New tax free childcare scheme - how does it work? Post Reply

[Earlsfieldite]

Has anyone heard of the new tax free childcare scheme, due to be introduced this Autumn where you get 20% of childcare costs back? It looks like it will be helpful to some and not to others. Doesn’t help those earning over £150K but good for those who are under that threshold and self employed or who have lots of children (as I understand it).

My question is, if I am already enrolled in a workplace childcare scheme, can I unenroll myself and take advantage of the new scheme? I am assuming so but if there are any employment lawyers out there who know more some clarification would be great. Perhaps the ever helpful Jo Martin could comment?

[jg75]

I'm glad you asked this question as I have been wondering for a while what to do, whether to enrol in the new scheme or whether to stay on the current childcare vouchers. I do know that the existing workplace childcare vouchers can be used for children of any age (up to 16?), so you could use them for holiday camps, etc when the children are a bit older. Whereas the new ones have a cut-off age. But that's about it! Any advice much appreciated.

[LuluDaffodil]

I'm interested in this too!

[cynic]

Here is the consultation doc on the new tax free childcare scheme.
While it seems much has 'been decided' I was chatting with an accountant today who cautioned that we have had an general election and the announcement of an emergency budget in July


https://www.gov.uk/government/uploads/s ... sponse.pdf

Money saving expert is a very good resource for this kind of info

[Earlsfieldite]

Thanks for that cynic. I saw the MSE info before posting but it didn't answer my question about entry into the scheme.

I have now twigged that to get the £2,000 per child tax free childcare, I have to be paying £10,000 plus per year in childcare (20% of costs are covered up to a max of £2K per year). Because I pay far less than this, I might be better under the old scheme which equates to £1,248 per annum irrespective of how much my childcare actually costs.

Gosh they don't make these things easy!

[JoEmpLawyer]

Subject to this remaining part of the Conservatives' plans post-election, this might help: https://www.gov.uk/government/news/tax- ... hould-know if you haven't already seen it. Very complicated!

[NYE31]

To qualify, parents will have to be in work, earning just over an average of £50 a week and not more than £150,000 per year

[balhamite]

Do both parents have to be working?

[BV1977]

And does your nanny have to be Ofsted registered to be able to pay her through the new scheme?

[BV1977]

@ balhmaite - in answer to your question, yes both parents have to be working according to the consultation doc

[balhamite]

Thanks

[iris18]

This is interesting but a bit confusing. I wonder if one parent can still use Childcare Vouchers and the other self-employed one can register for the scheme?...

[firsttimerSW11]

Does it exclude those families where only one parent earns over £150k?!

[Nightingale]

Yes that's right

https://www.gov.uk/government/publicati ... are-scheme