Please see below information on a new scheme to update CCVs . For more information please visit the website .
|
|
|
An update to childcare vouchers
|
The Queen's speech, in June this
year, included plans for a new scheme to help working parents with their
childcare costs.
This new scheme, called Tax-free
Childcare (TFC), is scheduled to be launched in autumn 2015 and will work
differently for parents to the existing childcare voucher scheme. At
present, it looks like TFC is due to be run by the Government, through
HMRC and National Savings & Investments.
How is TFC different
to the current scheme?
TFC has much more complex eligibility
requirements:
- Both
parents in a two-parent family have to be in work to be eligible for
TFC, each earning less than £150,000 a year and not receiving the
childcare element of Universal Credit.
- TFC
is also open to self-employed parents, whereas the current scheme is
not.
- TFC will
only be available for children under 5 initially or under 17 for
children with disabilities, extending to all children under 12
within the first year (the current scheme is open to children aged
under 16, or 17 if registered disabled).
Another key difference is how parents pay in to the
scheme:
- The
current scheme works as a salary sacrifice deduction, so parents
save tax and NI on their childcare vouchers. Under TFC, they will
pay directly into TFC from their bank account (the employer is not
involved).
- However,
for every 80p they pay in, the Government will top up 20p, up to a
maximum £2,000 per child, per year.
This means that there will be many parents who are not
eligible to join TFC or who would be better off staying with their
employer's childcare voucher scheme.
|
|
|
The existing employer
childcare voucher schemes won't close - they will continue to run
once TFC launches, but parents will need to already be registered on
it to continue to use it.
If you'd like to find
out more about the changes to childcare vouchers, please visit our website.
|
|
|
|
|
|
|
|
|
|
No comments:
Post a Comment