Tax Free Childcare (TFC) Scheme set to be launched in early 2017
01 July 2015
Today the Supreme Court found the government’s proposals to deliver the new scheme lawful. There were a number of organisations who currently provide childcare vouchers via the current scheme who challenged HMRC’s choice of using NS&I, but the Supreme Court unanimously dismissed their appeal. It has also been confirmed that employer supported childcare arrangements, including salary sacrifice schemes can continue to take new entrants until the implementation of the new TFC scheme. The full announcement can be viewed here.
Exchequer Secretary to the Treasury, Damian Hinds said:
"We are pleased that the government’s proposals for delivering Tax-Free Childcare have been found to be clearly lawful. This government is absolutely clear on the importance of supporting families with their childcare costs.
It is disappointing that some organisations involved in the existing scheme felt the need to take and persist in this costly and wasteful course of action, which has led to a delay in the launch of Tax-Free Childcare.
We are now pressing ahead with the scheme as part of our ongoing commitment to support working families."
Tax-Free Childcare is part of the government’s long-term plan to support working families and will provide up to 1.8 million families across the UK with up to £2,000 of childcare support per year, per child, via a new simple online system.
The government is clear on the importance of supporting families with their childcare costs. Spending on childcare was increased by £1 billion in the last Parliament and the government has also committed to doubling free childcare for working parents of three and four year olds to 30 hours a week.