One of the ways to reduce the corporation tax is by the
child care vouchers.
Contractors can benefit from it as the government is helping
the working parents to afford the satisfying child care.
If a parent spends money on child care , than for qualifying
children they can apply for child care out of their limited company or personal
income and the expense will qualify for the allowable expense to enable the
taxable income to be reduced on which the tax is calculated.
In order to qualify for child care voucher the child must be
under 15 or 16 if they are disabled. The child can be your own or step child, lives
with you and you have the parental responsibility, The other thing to remember is in order to qualify for
making the child care cost as allowable expense the child care cost must be
paid to the registered or approved child carer. The exempt allowance is 55 per week. And if it’s after Aril
2011 there are different amounts allowed depending on if you are basic, higher
rate tax payer.
Contractors will just need to arrange an approved child
carer and pay the cost through the limited company and that will help the
limited company to reduce the tax. Please speak to one of our accounting service for contractors
tax advisor London and he/she will be able to advice you whether what is the
best option for you and how you can save taxes fully.
HMRC normally issues refund of child care vouchers issued in
current tax year. Please find below the
links for more information:-
Things to remember is if you are pregnant make sure you
leave the child care vouchers in week 17 of the pregnancy ,if you are sick as
long as your salary does not fall below the lower earning limited you can claim
for child care voucher benefit and your pension contribution will not be
affected by child care voucher benefit.
Please contact our contractor accountancy services London
for more information.
See more here :- excellenceaccounting.com
