use the money saved by not paying tax and NI to go on holiday…
see how much you could save in tax and NI each year by using the v-payplan
Working families could save up to £1866 a year on their childcare costs — simply by joining the v-payplan
how much can you save?
Savings arise from substituting part of your gross salary – up to £243 per month with childcare vouchers. Taking this from your gross salary means that this amount is deducted before tax or national insurance is applied.
Voucher amounts claimed per month and therefore savings vary by tax bracket. A 20% tax payer saves £933 a year, a 40% tax payer saves £625 and those paying 50% tax will save £605 per year.
Using the v-payplan, the table below shows typical annual savings realised for both employee and employer.
you pay tax at
you can claim monthly/annually
you save annually
your employer saves annually
The scheme is cost neutral for employers. By making childcare vouchers available to all employees, your employer will save by not paying Employers NI contributions on the voucher amounts claimed. These savings far outweigh the costs of implementing and running the scheme.