Did you know, on 21 April the government launched two new childcare schemes for working parents?
Tax-Free Childcare is for eligible UK working families, including the self-employed, with children under twelve or under seventeen, if disabled. For every £8 they pay in, the government will add an extra £2, up to £2,000 per child, per year (or £4,000 per year for disabled children). Parents of children under four on 31 August and parents of disabled children can apply now.
30 hours free childcare is for eligible working families in England, with three and four year old children. This is an extra 15 hours a week of free childcare, so 30 hours in all.
Parents of children who will be under four on 31 August can apply now.
Employer-Supported Childcare, also known as the childcare voucher scheme, will remain open to new applicants until April 2018. Employees registered with the childcare voucher scheme can use the scheme for as long as their employer offers it.
You cannot use both Tax-Free Childcare and Employer-Supported Childcare.
If someone chooses to move from childcare vouchers to Tax-Free Childcare, they will need to provide their employer with a Childcare Account Notice (CAN). They can do this by email; just state that they are leaving the employer’s voucher scheme to use Tax-Free Childcare.
They have 90 days from opening their Tax-Free Childcare account to give the CAN to their employer. At this point, the employer will stop their access to childcare vouchers. Any money already accumulated in childcare vouchers can be used after they join the Tax-Free Childcare scheme.
For further advice contact:
tel: 0207 993 5016