A couple of years ago, HMRC were looking to withdraw the childcare voucher scheme which many employers offer and planned to replace it with a new scheme from the Autumn of 2015.
This never happened but HMRC have now confirmed that a new tax-free childcare scheme will be launched from early 2017.
The new scheme will be available to everyone, not just to those whose employers chose to offer childcare vouchers. It will be operated via an online account with HMRC into which you make payments. For every 80p you pay, the government will top it up with an extra 20p – equivalent to the current basic rate of tax.
The government will fund up to £2,000 per child per year (£4,000 for disabled children), giving a total of £10,000 for child support, which will only cost the parent £8,000. The scheme will be available for children under the age of 12.
If you have any questions at all please do contact us on 01782 279615.