We've been having a discussion in the office re: childcare vouchers and the proposed new scheme due to start in 2017 and specifically how they relate to our clients who own and manage limited companies.
Under the current system of childcare vouchers, someone joining a scheme can get one of three maximum amounts tax free from their company, £243 per month if basic rate, £124 per month if higher rate or £110 per month if additional rate. The confusion is over what determines if someone is basic, higher or additional as it's my understanding that it doesn't include any income other than employment income so our directors taking £0K - £11K salaries but with rent and dividends making their total income over £100K can still get the full £243 per month, but I'm alone in this assertion.
My question is am I right or are the others asserting it's determined by your actual tax status correct? And is the situation different for the new Tax-Free Childcare scheme because I think that does depend on your total taxable income being under £100,000 but I'm not 100% on that.