Delay to new tax-free childcare scheme
The government’s new Tax-Free Childcare scheme which was to be implemented by the end of this year has now been delayed to next March. This initiative has been designed to help parents with the cost of childcare.
Potentially annual childcare costs of up to £10,000 per child can be met, with parents covering £8,000 of payments and the government contributing the remaining £2,000.
For a disabled child, the maximum government contribution is £4,000.
When it goes live, the scheme will apply to children aged 12 and under or, for children with disabilities up to the age of 17.
This is the first childcare scheme to provide a tax break for the self-employed.
However, the following qualifying conditions need to be met by all parents:
• Meet a minimum income level based on working 16 hours per week at the National Living Wage. For self-employed workers, the government have introduced a ‘start-up’ period, to support newly self-employed parents. During this period, a newly self-employed parent will not be required to earn the minimum income level.
• Each earn less than £100,000 a year; and
• Not already be received support through Tax Credits or Universal Credit.
Those most likely to benefit from the scheme include self-employed parents and working single parents with annual childcare costs in excess of £5,000.
The government has launched a website www.childcarechoices.gov.uk, which guides parents through the various options available.
To find out if this scheme will be right for you, speak to Jolene Mallaghan on 028 8772 4697 or email Jolene at Jolene.Mallaghan@gildernewandco.com.
Posted on November 27, 2017