Update on Child-care Voucher Schemes and the new Government “Tax-Free Childcare” Scheme
On the 1st July HMRC won their ongoing battle to prove that their new scheme was lawful. Unfortunately, due to the legal proceedings, the launch of Tax-Free Childcare (TFC) has been postponed until early 2017. This means that the existing employer schemes/childcare vouchers will remain the same until then.
The government will be launching (although no date given) a calculator so that families can work out which scheme will be the most beneficial for their circumstances.
The new TFC scheme will be an online account providing families across the UK with up to £2,000 of childcare support per year, per child (or £4,000 for disabled children).
If you are an employer, HMRC states “As an employer you will have no mandatory role within the new Tax-Free Childcare scheme. However you may want to keep your employees up to date with the changes that are being introduced. You will also be able to make payments into your employees’ childcare accounts, if you want to. You will be liable to pay National Insurance contributions (NICs) on these payments and your employees will be liable to pay both income tax and NICs.”