New Tax Free Childcare Scheme 2017
The Government recently announced that its new Tax-Free Childcare scheme will be introduced in a phased process throughout 2017. To be eligible to qualify for this new scheme, which will initially only include children under 5 years, both parents have to be working. The Government propose to extend the age limit to include children under 12 years within the first twelve months. Once the new Tax-Free Childcare scheme is introduced parents will not have the option of joining the current Childcare voucher scheme.
However anyone who is signed up for childcare vouchers before April 2018 will have the choice of either continuing to take childcare vouchers or switch to the new scheme if they wish – depending on which scheme suits them best. Read more about the forthcoming changes and what you can do to save money on childcare now and in the future.
What are Childcare Vouchers...?
Childcare Vouchers are a simple, flexible and effective way for employers to help their employees with their childcare costs. Companies can give employees up to £2,916 per year tax free in childcare vouchers saving your company 13.8% Employers National Insurance Contribution on this figure and saving parents up to £933 each in Tax and National Insurance.
Each Parent can save up to £933 per annum (or up to £625 per annum for higher rate tax payers). Employers can save up to £402 per employee per year in NI contributions. The scheme also improves staff morale, employee retention and recruitment of new staff.
The Government changed the legislation for childcare vouchers with effect from 5th April 2011 which changed the amount employees can receive in childcare vouchers depending on their Tax band.
Employees who are higher rate tax payers that joined a Scheme prior to 5th April 2011 will continue to receive Tax and National Insurance savings on up to £243 per month.
For full details of the legislation changes please email us to request a copy of our ‘Employer Guide to Changes in Childcare Vouchers Legislation’ or download a copy now (click here).
About Gemelli Childcare Vouchers
Gemelli provides Employers, Parents and Childcare Providers with an efficient, professional and prompt service in the way that suits them best - whether that's online, by post, by phone or face-to-face. We can set up schemes for companies of any size, from one employee to thousands.
Gemelli was founded by a Human Resources Director and mother, with over 15 years experience in Personnel. She has managed a fulltime career with having children, and understands first hand the value of excellent, year round childcare - and the costs involved.
Company Registration Information: Registration No. 6292426 VAT No. 903 9518 20
Registered Office: Gemelli Solutions Ltd. Gemelli House, Wood Green, Buckingham. MK18 5DZ
Tel: 01280 851113 Fax: 01280 850064