Key points for parents about Tax Free Childcare
06 July 2015
Even though employers will have no direct administrative duties under Tax-Free Childcare, it will be useful to have knowledge of the scheme when employees start to ask questions relating to existing Employer-Supported Childcare.
We recently reported that the new Tax-free Childcare has been delayed and is now expected to launch from early 2017. The existing Employer?Supported Childcare scheme will remain open to new entrants until Tax-Free Childcare is launched.
Tax-Free Childcare will be available to up to 1.8 million households to help with the cost of childcare, enabling more parents to go out to work, if they want to, to provide greater security for their families. Here’s the top ten things for parents to know about the scheme.
- You’ll be able to open an online account
- For every 80p you or someone else pays in, the government will top up an extra 20p
- The scheme will be available for children up to the age of 12
- 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
- Any eligible working family can use the Tax-Free Childcare scheme - it doesn’t rely on employers offering it
- The scheme will also be available for parents who are self-employed
- If you currently receive Employer-Supported Childcare then you can continue to do so
- Parents and others can pay money into their childcare account as and when they like
- The process will be as simple as possible for parents
- You’ll be able to withdraw money from the account if you want to
Further details of these ten key points are available on GOV.UK.
More information will also become available ahead of the scheme being introduced so parents making childcare decisions are able to consider all their options.