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A query was raised regarding whether childcare expenses covered via 'childcare vouchers' can be included in the calculation for the increased maternity tax deduction. The Directorate General for Taxes (DGT) ruled that if the voucher is treated as an exempt benefit in kind, it cannot be included; however, any portion of the expense paid directly by the employee from their own funds does qualify.
This clarification distinguishes between tax-exempt benefits in kind and out-of-pocket expenses, ensuring employees correctly identify which childcare costs can increase their maternity tax relief.
The tax team reviews your specific situation.
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