MSE News: Childcare voucher tax breaks may be axed

Tiney

A large campaign to stop Gordon Brown from removing this exemption has been started. There are several things you can do if you wish to show your support. First, as someone has previously mentioned, sign the petition: search 'scrap childcare vouchers petition' on the Number 10 website. This is a legitmate petition and currently has 9,849 signatures so get your name on there. Every little helps in this case!!!

Also there is a blog running that some of the main suppliers of Childcare Vouchers are backing in order to raise awareness and gather support: vouchersblog.co.uk

And if you're into Twitter and Facebook so you rally up support from people you know on: follow SimonSays_CVS on twitter or search for Save Childcare Vouchers group on Facebook

There will only be a small window of opportunity to initially try and get this overturned so people need to show support as soon as possible.

Apologies as I'm still quite a new user of the site, I can't post links but I promise these are all legimate directions to point you in to help stop this happening.

bradshaw_chris

I thought the government wanted mums to get back to work! It's almost irrelevant what the dad earns, if the mum's earnings won't cover the childcare then they won't go back to work. My wife could earn a healthy £24k if she went back to work, but once you factor in childcare for 2 kids and petrol it doesn't make sense (and that's WITH childcare vouchers!).

I say increase childcare voucher entitlements, not scrap them. GB will get a lot more taxes off my wife if they did.

Carol_Hill

mumof2girls wrote: »

I was gobsmacked to say the least!

My OH and I are not high earners (OH is on 20 odd) and Im on 9k ptime, by the time we pay our childacre £700+, mortgage etc, we are bloomin low earners! I rely heavily on these vouchers through salary sacrifice.

Yet again, penalised for working!

EDIT: I have signed the petition!

I too feel the same, we are not high earners and child care vouchers help pay for after school club and school holiday club which would definitely leave us struggling to pay for child care. This is not a benefit that just helps high earners - just working parents who would rather work than claim benefits!! I have always leaned towards Labour but this is the nail in the coffin for us. :mad:

kelloggs36

Mine and my hubby's joint income was not as high as £35k when we had childcare costs but we got NOTHING as we supposedly earned too much?? We had 3 children, one of whom was in full-time child care at a cost of £120 per week.

shell_542

kelloggs36 wrote: »

Mine and my hubby's joint income was not as high as £35k when we had childcare costs but we got NOTHING as we supposedly earned too much?? We had 3 children, one of whom was in full-time child care at a cost of £120 per week.

According to their calculator on their own website a couple, over 25, one working 16 hours, the other 48 hours earning approx £34,000 I think it was, gets some childcare element of the working tax credits. Not a lot, but some.

shell_542

Couple. Both working. 16 hours and 48 hours. One child over 1. Paying £175 a week childcare costs.

From their website:

Based on the information you have entered, your household may be entitled to the following tax credits award:-

Child Tax Credit £1388.66

Childcare element of Working Tax Credit £330.83

Sub total £1719.49

Working Tax Credit (less the childcare element of Working Tax Credit) £0.00

Note: The childcare element of Working Tax Credit will always be paid direct to the person who is mainly responsible for caring for the child or children, alongside payments of Child Tax Credit. Total £1719.49

This is based on your household income of £35000.00.

This is the amount your household may be entitled to from 06/10/2009 until 05/04/2010. This result is only an estimate and is based on the information provided assuming you make the claim on 06/10/2009. This means the amount shown may not be your entitlement for the full year.

That is only from today until the end of the tax year, so 6 months. It would be double that £330 over the year.

shell_542

The thresholds go up every year. Maybe it has gone up since you and your hubby claimed?

shell_542

I've just done a calculation for 2 adults, working over 16 hours, earning 35,000, 3 kids, one in childcare costing £120 a week. It says no childcare costs are covered but the total child tax credits would cover the costs of the childcare costs and more anyway.

2 children wouldn't get any childcare costs covered and the tax credits alone wouldn't cover the costs though. But they would cover over half of them every 4 weeks.

flea72

bradshaw_chris wrote: »

if the mum's earnings won't cover the childcare then they won't go back to work

most childminders charge in the region of £3/hr - nat min wage is just under £6/hr - however you look at it, you would be making money. it just depends on whether you think taking home £1-£2/hr of your pay is worth the running around involved

Flea

Mothygirl

Lets face it - the harder you work - the more you earn - the more you earn the more tax you pay - Then the Gov penalise you for it by taking away every small benefit they gave you. Sorry but I feel very un-charitable at the moment. If the gov rewarded those that work hard instead of those that don't maybe more people would see the benefit of actually going out and earning a living instead of taking mine.

What I really want to know is why someone who contributes to the system's children are entitled to half of the trust fund money of someone who contributes nothing at all.

Is it me or do we live in a backward society.

If you chose not to work then I don't think you should have a better lifestyle than someone who does and I know plenty of people who think my hubby and I are nuts for working and paying huge nursery fees for two children each month.

Sorry for going on but it really does get my hackles up!!:mad::mad::mad::mad: