tax free childcare

lite_ruse

Hi, I'm considering switching from childcare vouchers to the new tax free childcare scheme.

Does anyone know when exactly it will be available? Which month?

Also, am I interpreting it correctly? My childcare costs are approx £300 per month all-year-round. To get to that amount, I'd have to contribute £240 monthly and the govt would add £60, is that correct?

For every 80p you or someone else pays in, the government will top up an extra 20p. This is equivalent of the tax most people pay - 20% - which gives the scheme its name, ‘tax-free’. The government will top up the account with 20% of childcare costs up to a total of £10,000 - the equivalent of up to £2,000 support per child per year.

fermi

Moved as requested.

lite_ruse

Thank you. Does anyone know the answers to my questions?

jamboken77

Hi,

Yes you have got that right, but if you are only paying roughly £300 per month, then you would be better staying in the employer based voucher scheme.

It will be here in October.

lite_ruse

Thanks, but I like the flexibility offered by TFC - contributions only when needed, as opposed to monthly deductions for vouchers via payroll.

lite_ruse

Looks like TFC was postponed until 2017!

http://www.ft.com/cms/s/0/ecd35480-1fff-11e5-ab0f-6bb9974f25d0.html
http://www.moneysavingexpert.com/news/family/2015/07/tax-free-childcare-scheme-delayed-until-2017

lexia

Hello does anyone know when TFC is actually starting and whether it will be available straight from the beginning for families with children over 5?

Darksparkle

lexia wrote: »

Hello does anyone know when TFC is actually starting and whether it will be available straight from the beginning for families with children over 5?

There is no specific date as yet, as per the link above its postponed until at least 2017