Sorry. You need to upgrade your browser

You are using Internet Explorer 8

This is considered an out of date browser. This website has been developed with modern browsers in mind to allow it to display at its best in a wide variety of viewing situations - including mobile viewing. But we haven't supported older browsers like IE8. Please upgrade to the latest version of Internet Explorer - or try Mozilla Firefox or Google Chrome. Both are excellent browsers.

Thank you.

Chartered Certified Accountants
and Business Advisors

01530 267320

Tax Free Childcare has arrived (almost)

In 2013 the government announced a new tax break for working parents to help them pay for childcare. It will, at last, be available soon. But what is it worth and how can you take advantage of it? 

Childcare tax break. It's so long since the government announced the introduction of "Tax-Free Childcare" that you've probably forgotten about it. In the meantime it's faced a number of technical troubles resulting in amendments to the original proposal and a legal challenge to the whole scheme. However, it's on the verge of becoming reality, below is what you need to be aware of:

  • Tax-Free Childcare is an online account, like a bank account which you can pay money into. The account can only be opened by parents with children aged up to twelve, or 17 if they have disabilities.
  • The parents must be in work, and each earn at least £115 a week, but not more than £100,000 each per year
  • Anyone can pay into it, not just the parents, at any time they like
  • For each 80p paid in the government will add 20p
  • The money must be used to pay for childcare with a carer who is registered to receive a Tax-Free Childcare payment
  • To qualify you must not be receiving free or subsidised childcare, or childcare vouchers from your employer
  • If you close the account and draw the money out instead of using it for childcare, you'll lose the government's contribution.

When can you sign up?

There's good news and bad. While some parents will be able to start a Tax-Free Childcare account some time in spring 2017 (an exact date hasn't been fixed), the scheme is being rolled out gradually. It's being made available to those with the youngest children first. It might be much later in the year before it's available to all working parents. 

If you would like further information please contact the Sence Team on 01530 267 320 or email info@senceaccounting.co.uk

23 Mar 2017

« Back to latest news

Latest news

What you need to know when your Company is Dormant...

A dormant company is not accountable for corporation tax purposes. There is no need to let Companies House know that you...

Click to read more >

Sence Alphabet

Do you know your Sence Alphabet? Annual Accounts Bookkeeping Compliant Digital ...

Click to read more >

VAT on hotel deposits

When you book a stay at a hotel for business use you usually have to put a deposit down at the time of booking, however,...

Click to read more >

Is it a Car or is it a Van?

The argument about whether a vehicle is a company car or van is back. It’s the differential in tax payable on company ...

Click to read more >

Teachers to have loans reimbursed

The government have now published details of how teachers in shortage subjects in certain parts of the country will be a...

Click to read more >

Tax and Paid Carers

When you foster children your local council will give you payments. HMRC treats paid foster and other carers as running ...

Click to read more >

Can a director be paid before trade begins?

New Companies often incur start-up costs before they begin trading. But… is it sensible from a tax and NI point of vie...

Click to read more >

Vat when incorporating your business

The motive for incorporating a business, that is working through a company instead of being self-employed or in partners...

Click to read more >

How can we help?

 

Submit

Testimonial

The team at Sence have been so helpful and understanding from the moment I started to use their services.

Natalie Bancroft
Red Door Studios

Click to read the full testimonial >