This website uses cookies to ensure you get the best experience. Please read our policies for more information.

10 Chartered Accountants
Book a call... we'd like to hear from you...

News

Tax-free HMRC scheme assists families with childcare costs
09 April 2019

A Government scheme set up by HM Revenue & Customs (HMRC) is advising parents to apply for the Tax-Free Childcare scheme, which provides contributions on savings used to cover childcare costs.

Research has revealed that more than a million families are failing to make use of the Tax-Free Childcare scheme.

The Tax-Free Childcare scheme is set to replace the already defunct Childcare Vouchers scheme. It is open to both self-employed and employed parents, giving more than a million families the chance for financial help.

The scheme ensures that for every 80p a family pays in to the online childcare account, HMRC adds an extra 20p, which is equal to the basic tax rate – meaning that some parents could get up £2,000 per year, per child towards the cost of childcare.

However, if one parent earns more than £100,000 per year or if parents don’t live in the same residence as their child, they will be unable to use the scheme.

Parents who receive Working Tax Credit, Child Tax Credit or Universal Credit are also not eligible to take part in the Tax-Free Childcare scheme.

Link: Tax-Free Childcare

Other recent news

Pass on up to £950,000 tax-free in 2019-20
16 May 2019

As of 6 April, direct descendants can inherit up to…
Read more

Beware the Employer Compliance Check Questionnaire
16 May 2019

HM Revenue & Customs (HMRC) is understood to be sending…
Read more

Employers must comply with new payslip rules
16 May 2019

Under the Government’s Good Work Plan, more than 300,000 workers…
Read more

Additional year to prepare for Making Tax Digital for taxes other than VAT
16 May 2019

The Chancellor’s Spring Statement contained an important nugget of information…
Read more

IR35: off-payroll working rules set to change next year
16 May 2019

HM Revenue & Customs (HMRC) has published new guidance on…
Read more

»

Case Studies