Tax-free childcare. 8 things parents need to know.
From Autumn of this year the Government will launch their new ‘Tax-Free childcare scheme’.
- You will open an online account which you pay in to cover the cost of childcare with a registered provider.
- For every 80p paid in the government will top up with 20p. The government will cap their contribution at £2,000 per child per year.
- The scheme is available for children up to 12 (17 for disabled children).
- Parents must be working, earning over £50 per week and not more than £150,000 per year.
- The scheme is available to all, including self-employed parents.
- To support newly self-employed parents, there will be a ‘start-up’ period introduced. during this, self-employed parents won’t have to earn the minimum income level (£50 per week).
- Parents, other family members and employers (taxable in the normal way through the payroll) can contribute to your online account. Payments in are flexible.
- If circumstances change, or you no longer wish to pay in to the account, funds can be withdrawn. The government will retain its corresponding contribution.
More information is due to be released ahead of the introduction of the scheme.
If you have any queries please email your question to lford@jonathanford.co.uk
