The policy landscape relating to childcare is changing. Indeed – with effect from April 2018, childcare vouchers are closing to new joiners.
On the 7th January 2013 there is a fundamental change that will affect any taxpayer earning more than £50,000, who is also in receipt of Child Benefit. The change also comes into play if their partner receives Child Benefit.
The change is the effective means testing of child benefit that has been highly publicised, eith all of its peculiarities and apparent income disparity.
Those of you with good memories will remember the rush to set up Childcare schemes last year prior to the round of changes that were implemented on the 6 April 2011.
From that date there is effectively a two category system for the amount of childcare vouchers and the tax relief on them.
If you are a higher rate taxpayer, or may become one in 2011/12 there is a last opportunity over the next few weeks to enrol into childcare voucher schemes and maximise your tax free allowances.
The current regime allows employees to claim up to £55 per week as exempt from PAYE and National Insurance. So, if you are a higher rate tax payer you can save more money.