Tax Free Childcare?
Posted on 13th January 2017 at 16:37
Will you benefit from the new tax free childcare accounts which is to begin in April 2017?
A new tax free childcare account scheme was announced in 2014 replacing the employer-provided voucher scheme. Although the introduction to this scheme was delayed due to some legal disputes. Now this has been settled there is to be a trial basis of the scheme in early 2017.
The new scheme will be coming out based on the results of the trial. The rules may sound complicated, but parents must be at work and earn at least £115 per week and must not have an income over £100,000. Then per year they can put up to £8,000 into a special account which the Government will top up with 20p for every 80p contributed by the parents. This account can only be used to pay for childcare such as nursery fees.
It's possible that the new scheme will eventually replace the existing childcare voucher scheme which is only available to employees where the business they are within offers such schemes. The new system will benefit the self-employed as well as the employees that work in businesses who don't provide childcare vouchers.
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