Tax-free childcare is coming this April
5 April, 2017
From 28 April this year, parents with young children will be able to claim tax-free childcare against their yearly income.
The Childcare Choices scheme is designed for working parents with children under 12 – or for disabled children under 17.
Parents can open an account with Childcare Choices which can be used to pay for registered childcare.
For every £8 deposited, the Government will top up the account by £2. Parents can receive up to £2,000 in top ups, while those with disabled children can receive up to £4,000.
If either you or your partner expects to earn £100,000 or more, you are not entitled to claim on the scheme. You must also earn a minimum of £120 per week (equal to 16 working hours on the national Minimum Wage).
Tax-free childcare can be used to pay for registered childminders, nurseries and nannies, registered after-school clubs and playschemes, and home careworkers working for a registered home care agency.
Chief Secretary to the Treasury, David Gauke, said: “The new Childcare Choices website provides busy families with options that suit their needs, so they can clearly see which childcare offer works best for them. For the first time, we have brought all the childcare options together to make the process easier and simpler for families and childcare providers.”
At Watson Buckle, we can offer support and advice on all of your payroll obligations. For more information about how we could help you, please contact us.