voucher saving schemes

In the gifts to make at a baby shower first scenario, they meet only 30 of the total childcare costs from their own pocket.
If you buy a gift card, you could lose your cash if the retailer went bust.
Do you receive the same amount of basic salary each pay period?The important thing to understand is that Christmas savings schemes aren'T protected by the official Financial Services Compensation Scheme (fscs).The main danger with gift cards is, again, that if the company you've got them for goes bust, there's a chance you'll lose your cash.They only got about half of their cash back, and it took them six years.There are two other kinds of Christmas savings scheme which don't operate like this, and are outside the scope of this guide: Supermarket Christmas savings stamps.Yet it can be a massive amount of cash.For example, if your childcare costs are above 175 a week for one child or 300 for two or more children.The key is they enable you to pay for childcare out of your PRE-TAX and national insurance income.It works by 'salary sacrifice a few very generous employers will simply give you the vouchers on top of your normal salary, but most will ask you to do what's called a 'salary sacrifice which, if you're on basic-rate tax, works something like this.In return, you get 1,000 of vouchers.In return, you're given gift cards, or sometimes hampers, toys and so on, in time for Christmas.You give up 1,000 of salary.but after tax NI that's only worth 700ish in your pocket.These vouchers - available via a special Government scheme and operated through employers - allow you to pay for childcare from your PRE-TAX salary.Vouchers may affect how much tax credit you can claim.The Government has launched a new website called Childcare Choices which allows you to apply for the scheme but has staggered the signing-up process.Frustratingly, they're only available via employers, but many large and small companies take part.There's a limit for Childcare Vouchers which isn't dependent on the number of children.Technically you earn less, if you need to sacrifice some of your salary to get vouchers, this can have an impact on other elements of your finances that depend on how much you earn - such as pension contributions, maternity pay and more.What about cancellation charges?Yes, my contractual salary is paid in equal instalmentsNo, my basic pay varies depending on the hours I actually work.Savers normally join in the first few months of the year, and then get their gift cards or other items around October or November.




[L_RANDNUM-10-999]