VAT savvy parents can beat the hike

Whilst we’d like to be able to ignore the pressures facing working families at the moment, it’s very difficult. We’ve recently been hit by a 2.5% raise in VAT and may face even more financial pressures in April; including tax changes to childcare vouchers for higher and additional rate payers.

However, all is not lost! Making a few clever decisions can reduce the impact of recent and upcoming changes – by acting now to receive the maximum benefit on childcare vouchers before 6 April and being VAT-savvy where ever you can to beat the increase.

If you’re not already signed up to a childcare voucher scheme, check how the upcoming changes will affect you; failing to act soon might mean you miss out on significant savings. Higher and additional rate tax-payers who sign up to the scheme after 6 April will see their potential savings drop from £1196 per year, to just over £600. The result is that some working families could miss out on as much as £1144* in tax and NI relief a year – act now and make sure you’re not one of them.

To help you free up a few more pennies, we’ve been on the hunt for ways in which you can save by avoiding VAT hikes, or steering clear of VAT-able products all together.

Read our guide to being VAT savvy today!