For immediate release:

Date: 16^thJanuary 2014 

How To Avoid The Tax Return Panic and Save on Childcare Costs

Are you a parent in a household with a higher rate taxpayer? If so, you or your partner may well be rushing to meet the 31^stJanuary deadline for online self-assessment to maintain some of your Child Benefit entitlement.

Entitlement to Child Benefit changed on 7^thJanuary 2013 for many higher rate tax payers, but there are ways to reduce the impact through salary sacrifice benefits such as Childcare Vouchers, says employee benefits provider, Busy Bees Benefits.

If you earn just over the £50,000 a year threshold, reducing your net income by taking Childcare Vouchers could mean you avoid having to complete that pesky self-assessment tax return. HMRC estimated that around half a million people who previously didn't have to complete a self-assessment form now have to do so. That's a lot of people with headaches right now. If you don't currently have Childcare Vouchers, you will still have to complete a tax return for 2012-13, but you can avoid it next year.

Higher rate taxpayers can currently sacrifice up to £124 per month (£1,488 per year) in exchange for vouchers to pay for a range of registered childcare up to the age of 16. So if your income is a little over £50,000 a year, taking advantage of Childcare Vouchers could take your income below the threshold where Child Benefit changes would apply. This means not only will you maintain your entitlement to Child Benefit, you will also receive the tax benefit from taking Childcare Vouchers, which are non-taxable and National Insurance exempt. A higher rate taxpayer can currently save up to £624 per year by sacrificing the maximum allowance. Both working parents can join a scheme to increase these savings (up to £933 per year for a basic rate taxpayer). Other salary sacrifice benefits such as cycle to work, car leasing and mobile phone schemes will also help parents to maintain their Child Benefit.

If your employer offers a Childcare Voucher scheme, join it. If not, ask them to provide one - it's a win-win situation for the employer too, decreasing their employer National Insurance contributions for every working parent on the scheme and improving staff recruitment, retention and morale.

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Notes

Contact

Emma Small, PR & Marketing Co-ordinator
Tel. 01543 484909 email:emma.small@busybeesbenefits.com

Stephanie Forrester, PR & Marketing Co-ordinator
Tel. 01543 484905 email:stephanie.forrester@busybeesbenefits.com

For further information about the Busy Bees Benefits Childcare Voucher scheme, visitwww.busybeesbenefits.com.