tax free childcare
luffa
Posts: 19 Forumite
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.
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No date yet announced with the delays due to the court case. Expected early 20170
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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: HLWS1590 -
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.0
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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.
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.0 -
Thanks, perhaps I'm misreading things, but my situation isn't covered there. I'm a single parent.0
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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?0 -
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 example0
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No, because they ask for contact information...0
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