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  • FIRST POST
    • luffa
    • By luffa 30th Sep 16, 4:58 PM
    • 19Posts
    • 18Thanks
    luffa
    tax free childcare
    • #1
    • 30th Sep 16, 4:58 PM
    tax free childcare 30th Sep 16 at 4:58 PM
    Does anyone know when is the govt launching tax free childcare? The NS&I website has no information. Apparently my childminder received a letter from HMRC - to sign up for this.
Page 1
    • Darksparkle
    • By Darksparkle 30th Sep 16, 5:01 PM
    • 3,430 Posts
    • 2,121 Thanks
    Darksparkle
    • #2
    • 30th Sep 16, 5:01 PM
    • #2
    • 30th Sep 16, 5:01 PM
    No date yet announced with the delays due to the court case. Expected early 2017
    • xylophone
    • By xylophone 30th Sep 16, 5:06 PM
    • 19,212 Posts
    • 10,924 Thanks
    xylophone
    • #3
    • 30th Sep 16, 5:06 PM
    • #3
    • 30th Sep 16, 5:06 PM
    http://www.moneysavingexpert.com/news/family/2015/07/tax-free-childcare-scheme-delayed-until-2017
    • luffa
    • By luffa 2nd Oct 16, 10:17 PM
    • 19 Posts
    • 18 Thanks
    luffa
    • #4
    • 2nd Oct 16, 10:17 PM
    • #4
    • 2nd Oct 16, 10:17 PM
    Thanks, apparently there's a trial starting later this year... I can't post links but this is what it says:

    Delivering the new childcare offer: trial of the joint childcare service
    Ahead of the introduction of Tax-Free Childcare in early 2017 and the 30 hours extended entitlement for three and four year olds in September 2017, HM Revenue and Customs (HMRC) will trial a new, digital, joint childcare service later this year. The trial will involve around 1500 parents, including some who are eligible for both schemes. It will enable HMRC to extensively test the system and ensure it provides a smooth experience and quality service for parents.
    Tax-Free Childcare and the extended free entitlement are a key part of the Government’s overall childcare offer which will provide over £6 billion per annum to working families and those on low incomes by the end of this Parliament.
    The Government announced in November 2015 that parents will be able to apply online for both Tax-Free Childcare and the extended free entitlement through a new joint childcare service being developed by HMRC, with their delivery partner National Savings & Investments (NS&I).
    The joint childcare service will provide a simple and straightforward way for working parents to access both schemes, avoiding the need to provide the same information twice, and saving them valuable time.
    In March 2016, the Government announced that Tax-Free Childcare will be introduced and gradually rolled out during 2017. The service will be made available to all eligible families by the end of that year.
    This statement has also been made in the House of Lords: HLWS159
    • fru-girl
    • By fru-girl 18th Oct 16, 10:56 AM
    • 105 Posts
    • 254 Thanks
    fru-girl
    • #5
    • 18th Oct 16, 10:56 AM
    • #5
    • 18th Oct 16, 10:56 AM
    Is there an online calculator somewhere that shows me whether tax free childcare is better than using childcare vouchers? I'm using childcare vouchers at the moment but I like the idea of TFC better. Thanks.
    • Darksparkle
    • By Darksparkle 18th Oct 16, 11:35 AM
    • 3,430 Posts
    • 2,121 Thanks
    Darksparkle
    • #6
    • 18th Oct 16, 11:35 AM
    • #6
    • 18th Oct 16, 11:35 AM
    Is there an online calculator somewhere that shows me whether tax free childcare is better than using childcare vouchers? I'm using childcare vouchers at the moment but I like the idea of TFC better. Thanks.
    Originally posted by fru-girl
    If you follow the link posted above it goes into detail about who is better off on which scheme and provides a link the further info.
    • fru-girl
    • By fru-girl 18th Oct 16, 12:11 PM
    • 105 Posts
    • 254 Thanks
    fru-girl
    • #7
    • 18th Oct 16, 12:11 PM
    • #7
    • 18th Oct 16, 12:11 PM
    Thanks, perhaps I'm misreading things, but my situation isn't covered there. I'm a single parent.
    • Darksparkle
    • By Darksparkle 18th Oct 16, 12:15 PM
    • 3,430 Posts
    • 2,121 Thanks
    Darksparkle
    • #8
    • 18th Oct 16, 12:15 PM
    • #8
    • 18th Oct 16, 12:15 PM
    Thanks, perhaps I'm misreading things, but my situation isn't covered there. I'm a single parent.
    Originally posted by fru-girl
    Did you follow the link that it says? There's a table on there that covers single parents.

    Tax free childcare benefits most unless you earn over £100,000
    • fru-girl
    • By fru-girl 18th Oct 16, 12:49 PM
    • 105 Posts
    • 254 Thanks
    fru-girl
    • #9
    • 18th Oct 16, 12:49 PM
    • #9
    • 18th Oct 16, 12:49 PM
    Thank you, I found it. I'm still a bit confused though, that table assumes 10K yearly childcare costs, mine are half than that... At the moment I'm a basic rate tax payer but that is about to change so am I correct to calculate it like that?

    childcare costs: £5000, 1 child, single parent:

    savings - with childcare vouchers:
    £933 basic rate taxpayer
    £624 higher rate taxpayer

    savings - with tax free childcare:
    £1000 (so that's approx 20% of 5000 - is that how the calculation is done?)

    so am I correct to say that regardless of basic/higher taxpayer status, I'm better off with tax free childcare as long as my costs are higher than 5k?
    • Darksparkle
    • By Darksparkle 18th Oct 16, 12:58 PM
    • 3,430 Posts
    • 2,121 Thanks
    Darksparkle
    Have you tried the Kiddivouchers calculator that it mentions under the table? It says you can use that if your childcare is less than the £10000 example
    • fru-girl
    • By fru-girl 18th Oct 16, 1:31 PM
    • 105 Posts
    • 254 Thanks
    fru-girl
    No, because they ask for contact information...
    • fru-girl
    • By fru-girl 18th Oct 16, 1:41 PM
    • 105 Posts
    • 254 Thanks
    fru-girl
    OK I found it, thanks for your help. Basically - as basic rate taxpayer I'm better off with TFC only if my monthly childcare costs are higher than £389 (~ £4668 annual). When I become a higher rate taxpayer, I'm better off with TFC if childcare costs will be higher than £260 monthly, so that one is a no brainer.

    So that means I can switch to TFC anyway, when it becomes available, as my childcare costs are approx £4.8-5K and they won't go down anytime soon...
    • Darksparkle
    • By Darksparkle 18th Oct 16, 1:51 PM
    • 3,430 Posts
    • 2,121 Thanks
    Darksparkle
    Just put in a fake email address, that's what I did but didn't know your details to be able to answer all the questions age/pay etc.
    • me1234
    • By me1234 2nd Nov 16, 1:52 PM
    • 25 Posts
    • 10 Thanks
    me1234
    I am a civil servant and my partner is a primary teacher - we are expecting our first child in December 2016. Partner will return to work in July 2017 onwards (so she can get paid over the summer holidays) therefore we will need to pay for childcare for a couple weeks in July 2017, not over the summer holidays, and again from September 2017 onwards.


    I note that there is a tax free childcare scheme coming in next year, but am I correct in thinking that I would be better off signing up for the childcare vouchers scheme in December?


    Any help/advice would be much appreciated.
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