MSE News: Childcare voucher tax breaks may be axed

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"Low and middle-income parents will be offered free childcare places for two-year-olds under new Government proposals ..."

Read the full story:
Childcare voucher tax breaks may be axed

SarahNeedle1872

So if there is no tax break on Childcare Vouchers, is there actually any point to them?

TBeckett100

Again "low" and "middle" income earners win.

Whilst I may be fortunate to pay 40% to the tax man each month, where is my reward?

I am ineligible for childrens tax credit because i earn too much and now this little benefit is being removed.

It is time we have a government who looked at higher earners and instead of milking them as cash cows, they should show some gratitude. Maybe a little bonus at the end of the year. 20% off a new car...

Earning good money seems to be a bad habit. Perhaps I will give it all up and stack shelves. No stress and as much credits as I can handle.

I am not getting at the low to middle earners, I have been there, but society is wrong. Let everyone benefit and give people a reason to excel themselves.

Steve40_2

typical' already battered and bruised the government kick the population again.

MUNCHKIN123

The long school holidays mean that many parents are forced to pay for childcare - even when their children are of school age. A good way of doing this has been via childcare vouchers. You can contribute via your salary regularly - save by not paying ni and tax....and help meet the cost associated with long school holidays.

My husband and I moved 250 miles away from family to get better jobs / income. The drawback being we don't have family to help out with childcare. It would appear we can't ask friends.............per Ofsted..........but we can't get any help per GB

It seems that GB is robbing Peter to pay Paul. Brilliant news, providing some free childcare for 2 year olds, mumble mumble quietly and hope no one will realise the true cost of this is increase in tax and Ni for working parents.

georgies_mum

Am thankful both mine will be in school by 2015 as although we are not high earners (just under 40% tax) we earn too much to get the tax credits and i presume would not be offered a free place a nursey. Also low and middle earners will be worse of for the 1st 2 years as the nursery place only applies from 2 years old we have found the £120 a month (hubby and i both do vouchers) that we save on tax and NI a big help. It seems the harder you work the less help you get.

Dancing_Shoes

georgies_mum wrote: »

It seems the harder you work the less help you get.

It doesn't just seem that way it IS that way:mad:

Where is the incentive for people to better themselves?

JimmyTheWig

TBeckett100 wrote: »

Earning good money seems to be a bad habit. Perhaps I will give it all up and stack shelves. No stress and as much credits as I can handle.

So why don't you do that?

sly_dog_jonah

Not to worry, this government will be history long before any such changes come into effect. Keep digging the Labour grave Gordon!

SarahNeedle1872

There's nowt wrong with stacking shelves! It may not be a high paid job, but its a job! And there'd be naff all on the shelves if it weren't for shelf stackers1

Dizie

I've just posted this in the moneysaving in families etc section, but think its probably better here. Apologies if this is in the wrong place.

An online petition has now been set up at the No 10 website about this, I've just had it emailed to me and have checked it out and its valid. I'm a working mother and DH and I are both members of our respective employers schemes. We are both standard rate tax payers, earning around the "average" mark I guess although my wage is part time. For us, its the difference between me being able to return to the job I did prior to having the kids rather than have to look for evening/weekend work to avoid the childcare need. Surely the government would prefer women like me to be paying someone to look after their kids whilst they work, so they're providing a job for someone else, paying taxes etc. I know from the parents who use the nursery I use, if we had to find an extra £2,000 per year, many would look for other ways to avoid using the nursery. Given the choice, I'd love to be at home looking after my kids, but we need the money and for us, the childcare vouchers have given us a way of me working part time and still having some "family" time.

[FONT=&quot]Gordon Brown today announced plans to scrap the childcare voucher scheme, stating too many higher rate tax payers benefit from it. He plans to replace it with 10 hours' free childcare for 2-year olds - which is OK if you have a 2-year old... The[/FONT][FONT=&quot] UK lags behind the rest of Europe when it comes to helping working parents and this move would be a further step backwards. Penalising working families to help other families go back to work makes no sense at all. If you're a working parent finding it hard enough with childcare vouchers, let alone without, please let Gordon Brown know that you do not agree with his plans by signing this petition[/FONT][FONT=&quot]



http://petitions.number10.gov.uk/keepvouchers/[/FONT]