The government was set to launch tax free childcare in late 2015 however court action meant that this was delayed. The companies that brought the challenge to the Supreme Court lost their case and now the new scheme will be delayed until early 2017. In having the delay it allowed the Chancellor to make one or two changes so make sure you check this out.
To help any parents/ carers, employers and organisations running crèches and nurseries, here is some important information about up and coming changes relating to childcare costs that you will need to be aware of.
Tax free childcare is coming
In 2017 the government is planning to introduce tax free childcare. This will affect parents/carers, companies who employ parents/carers and organisations that run childcare schemes.
The Government has stated that (from sometime next year) where there’s a family with one or two working parents/carers they can have an income of £100,000 per year and still qualify for tax free childcare.
They need to work just a minimum of 16 hours per week to qualify.
Company provided or independent childcare?
If your company runs its own free or subsidised childcare facility/crèche and offers this as an employee benefit, this will not be affected.
There will however, be tax changes if the childcare facility/crèche a company pays for or subsidises is independent (even if it is partly funded by the company).
We can help
If you are a parent/carer, an employer or run a childcare facility, then Aspirations Accountancy can help you with guidance and support.
For example, some childcare schemes will be partly tax and NI exempt, and if you are an employer this is something that could save you up to £400 each year, per employee.
For more information or to find out how you or your organisation will be affected, please call Aspirations Accountancy on 01634 298238 or email firstname.lastname@example.org .
Disclaimer: Articles are accurate at the time of posting but may be affected by legislative changes and individual circumstances. Please always contact us for personalised advise and assistance.