Top Tax Tips for Owner Managed Businesses
4. Employer Supported Childcare
Up to £55 per week may be provided free of tax and NICs to employees through childcare vouchers which may be used to cover the cost of childcare such as registered child minders, nurseries and play schemes.
In the case of husband and wife companies, the couple may between them extract up to £5,720 pa tax free from the company with the expenditure qualifying for a corporation tax deduction for the company.
Care needs to be taken because for individuals joining the scheme after 5 April 2011, tax relief for high rate and additional rate taxpayers is capped at that which would be due to a basic rate taxpayer.
Top Tax Tips for Owner Managed Businesses – Tip 4 – Employer Supported Childcare
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Tax Planning