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!