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Childcare Support

Childcare Support
Paul Chappell
Written by
Monday, 15 January 2018 07:42

My colleague, Jack Simpson, wrote a blog in June 2017 highlighting the changes effect from April 2018 to the provision of childcare vouchers.

It is not only the provision of vouchers that will changes, changes from April 2017 are now in place extending childcare support.

Just to recap on Jack’s blog, childcare vouchers will no longer be available to new joiners from 6 April 2018. If you are already benefitting from vouchers, these will continue to be provided. So what is changing?

There are 2 schemes available, Tax-Free Childcare and 30 hour free childcare. Parents can apply for both schemes through the Childcare Service.

To qualify for either scheme, parents must be working and earning at least £120 per week and not more than £100 000 per annum. HMRC have provided a childcare calculator to help parents make informed judgements on what childcare costs they can cover

Parents cannot use the Tax Free Childcare scheme at the same time as receiving childcare vouchers.

Tax Free Childcare

This scheme operates through a new childcare account which parents will open. Parents are required to pay into the account and for every £8 paid into the account, the government will pay in an extra £2. The maximum government contribution is £2000 per child per year. If parents have a disabled child this amount increases to £4000 per child.

This money is then available to pay their childcare provider. If the childcare provider is signed up to the tax free childcare scheme, parents will be able to make the payment to the provider directly form the account.

The tax free childcare is not available if childcare is provided through a salary sacrifice scheme.

So what is the eligibility criteria?

Your child under 12, or 17 is disabled and usually live with you.

You (and your partner if you have one)

  • live or work in the UK
  • are employed or self-employed
  • are over 21 and earn on average at least £120 per week (unless in the first year of self-employment
  • earn less than £100 000 a year each
  • don’t get other support with childcare, including from a childcare voucher or salary sacrifice

30 hours free childcare

Every 3 and 4 year old already qualifies for 15 hours a week free childcare. 30 hours per week has been available since September 2017.

The eligibility criteria is the same as the Tax Free Childcare except you can continue to receive the following at the same time as 30 hours free childcare:

  • tax credits
  • Universal Credit
  • Childcare vouchers or salary sacrifice scheme
  • Childcare grants and bursaries

Click here for the link to HMRC’s information and application form.

If you require any further information or assistance please contact Paul Chappell on 03331 123456

Paul Chappell

Paul joined Dataplan from HM Revenue and Customs in 2007 and runs our PAYE compliance and investigation services.

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