1)can u please explain the benefit and exempt about childcare? What is this maximum benefit(£11,£22 and £28 about? 2)are all overseas subsidiary associates? What are the conditions to be associates for overseas and uk resident?
I think I can explain the first one.
From what I understand, an employee is entitled to receive tax relief of up to £11.00 per day for childcare after tax. That equates to:
11/0.2 = £55 per day for basic rate tax payers
11/0.4 = £28 per day for higher rate tax payers
11/.05 = £22 per day for additional rate tax payers
As long as you remember it’s £11 after tax you can work out the pre tax figure.
Hi horizonhoard I have only just discovered your now very very old query on the system so you have my sincere apologies for not having answered this question when it was first asked! Neil is partly right in his answer to your first query – the amount of chidcare vouchers that may be issued as an exempt benefit are £55, £28 and £22 per WEEK to respectively basic, higher and additional rate taxpayers which has the effect as Neil calculates of saving each taxpayer group the same amount – £11 of tax!
As regards your second point companies are associated if either one controls the other or two or more are under common control – a parent company therefore is associated with all its subsidiaries both UK and overseas. A subsidiary will however be excluded if it is a dormant company. Hope this now helps!
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