Tax Free Childcare from 2017

https://assets.digital.cabinet-office.gov.uk/government/uploads/system/uploads/image_data/file/23715/s300_TFC_screenshot_960x640.jpg

 

Tax-Free Childcare will be available to around 2 million households to help with the cost of childcare, enabling more parents to go out to work, if they want to, to provide greater security for their families.

In summary:

  • The new scheme will start in early 2017
  • You will open an online GOV.UK. Tax-Free Childcare account
  • For every 80p paid in there will be a top up of 20p. 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 (or £4,000 for disabled children). You or anyone can pay in whenever and whatever amounts you choose.
  • Its available for children under the age of 12 or 17 if disabled
  • Parents must be working and earning between £100/week and £100,000/year, there will be a 3 month checking process.
  • Any working family can use Tax-Free Childcare, provided they meet the eligibility requirements. Its not dependent on your employer offering a scheme. Its also available to self employed parents and those of paid sick leave, SMP, SPP and Adoption leave.
  • You will also have the option to continue with an employer supported scheme
  • If you need to you can withdraw the 80p part paid in

You find more details at Gov.UK

steve@bicknells.net

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