Top Facts On Tax Free Childcare

free tax The Government recently consulted on a really new proposed scheme to gonna be closed to any new entrants, the new scheme will replace the current Childcare Voucher scheme after the general election in Parents who currently claim Childcare Vouchers could be able to remain in the scheme if they choose to do so. Under the current Childcare Voucher scheme a basicrate tax payer can typically make around 900 per year in tax and National Insurance savings. It ain’t compulsory for employers to offer the current scheme. Normally, childcare Vouchers are available as an employee benefit to parents whose employer chooses to offer the scheme.

Families who claim tax credits and receive support through the new Universal Credit, that is due to be introduced in stages until 2017, won’t be eligible for Tax Free Childcare. Parents receiving Universal Credit, where both parents are in work and earn more than the personal tax allowance (which is due to reach 10000 by may be able to claim up to 85 of their childcare costs. Employers For Childcare can provide parents with information on which scheme they gonna be better off on.

Nonetheless, must register now to protect their savings in the future, Some parents might be better off on the existing Childcare Voucher scheme, even if they are not currently paying for childcare. Employers can sign up to the current Childcare Voucher scheme now to ensure that they are making childcare savings available to their employees, and will also make savings on their employers National Insurance Contributions.

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