April 21st 2017 saw the introduction of the Tax-Free Childcare scheme which provides support with the cost of childcare. By the end of 2017 Tax-Free Childcare will be available to over 2,000,000 households. Continue reading below for details on the scheme including who can benefit, what the benefits are, resources to check if you’re eligible and how to apply. Also keep an eye out for a follow up article that will provide useful details on Tax-Free Childcare for employers – follow us on Twitter, Facebook or LinkedIn to stay up to date.
The Tax-Free Childcare scheme is available to parents that have children under 4 years of age and/or disabled children under 17. There is a gradual rollout of the scheme but by the end of 2017 all eligible parents will be able to avail of the scheme.
For every £8 families pay in the Government will make a top-up payment of an additional £2, up to a maximum of £2,000 per child per year (or £4,000 for disabled children). Parents will then be able to use the funds to pay for registered childcare.
Working parents are able to apply to open an online childcare account – you will only be able to pay your childcare provider from your childcare account if your childcare provider is signed up to Tax-Free Childcare. Click here to check if your childcare provider is already signed up for Tax-Free Childcare.
To check if you’re eligible click here to visit the Childcare Choices website. Once on the website:
Note: click “Is it for me?” to see eligibility details.
Read the instructions and follow the application link on the gov.uk webpage here.
Here at Paycheck Plus we strive to make our clients become the best employers that they can be. As part of this, our friendly payroll specialists can explain the factors affecting net take home pay and how employees can use their personal circumstances to minimise their tax liability. By understanding their personal payroll calculations employees can increase net take home pay at no additional costs to the employer – a win-win for all.
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PaycheckPlus – Payroll Excellence