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NEW TAX FREE CHILDCARE SCHEME LAUNCHED

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NEW TAX FREE CHILDCARE SCHEME LAUNCHED

The government have launched a new Tax-Free Childcare scheme this year for all working parents including the self-employed.

This scheme is available for all families who are eligible and they will receive £2 for every £8 saved in the account.

The maximum bonus a family will be able to obtain is £2000 per child or £4000 for a child with disabilities. Any money saved over the £8000 will not receive the bonus and if circumstances change and the account is not needed you will be able to withdraw the money freely, that you have saved, from the account with the bonus not being eligible for redemption. In order to receive the £2000 or £4000 bonus your child must be under 12 or under 17, if disabled.

Currently this is available to parents of children under four on 31st August.Families who are already part of the Employer-Supported Childcare scheme, also known as the Childcare Voucher Scheme, will not be able to use both schemes. Childcare Vouchers will remain open to new applicants until 2018 and this will still be able to be used until the employer no longer offers this scheme.

If someone would like to move from Childcare Vouchers to Tax-Free Childcare they will need to provide the employer with a Childcare Account Notice.This needs to be completed within 90 days from opening the Tax-Free Childcare account at which point the employer should stop access to childcare vouchers.

Click the link to see what scheme you will be better off with

https://www.gov.uk/childcare-calculator Further information regarding schemes

https://childcare-support.tax.service.gov.uk/?utm_source=childcarechoices&utm_medium=microsite

HMRC’s 10 points they think parents should know –

https://www.gov.uk/government/news/tax-free-childcare-10-things-parents-should-know

HMRC’s top things regarding the Tax-Free Childcare scheme

https://www.gov.uk/government/news/tax-free-childcare-top-things-childcare-providers-should-know

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