New Child Care Tax Benefits (2006-2007)
 

We got a publication that "implies" that from April 2006 a familly can use the first £50 (per working parent maximum 2 of) as a tax-free amount towards paying for childcare.

Excellent - as that just bumps everything up along the tax-scale, that essentially means that myself + wife both on 40% tax could in effect have an extra £2080 per year towards childcare - or does it? Or is it an extra £40 per week for each week our child is in a registered child-care organisation? Or what?

So does anyone know about this and how to obtain it?

Do you need it?

I already get tax free childcare using a voucher system which is tax free up to £217/month per parent (ie, total of £434/month tax free if you need that much childcare.

Is this something ELSE in addition??? ;) ;) ;) :D

I heard about something like this aswell, but I don't know much about it.
The thing I do know though is that this year I am going to be putting our daughter in to child care as I am getting a job and it is going to cost me the best part of £500 per month for a childminder. I think it's quite expensive as both me and my husband know we will be on a low income, based on what we know what we have to pay for otherwise to live etc, the government won't class us as low income so we will have to cough up all costs ourselves, plus once I have a job that means we will lose out on the tax credits we get. I have looked up on the above topic but I can't seem to figure it all out, but I know that I won't get it, as far as I can see it is only certain employers you will get it from.

For the childcare voucher scheme, your employer must participate. The cost of the voucher is deducted from your salary, and the tax adjustment made then.

However, this scheme has been operating for a year or two now, so not sure what the scheme that PTMW mentions is as it seems to begin in April 2006???

I use one of these schemes too, but I think it's limited to £217 per month per parent. Details here

Oops...yes, you are quite correct....had a feeling £270 was too high....yes, £217.....will go and edit mine.....

This scheme is basically a tax break introduced by the government - it allows you to take £50/week free of both tax and national insurance in the form of childcare "vouchers" which you can then use to pay for private childcare (nursery, childminder etc).

Many companies seem to be rolling this out as part of a flexible benefits package for which other tax breaks have been introduced (e.g. health insurance, purchase of home computer equipment). I'm pretty sure that the company you work for has to set up such a scheme and then apply and be registered with the inland revenue to get these tax breaks - so unless your company has done so, you can't claim them.

http://www.childcarevouchersdirect.c...de+for+ccv.pdf has full info.

Gary.

OK, sounds like we're all talking about the same scheme then.

I'm 90% certain that if your employer doesn't run the scheme, there is a method of setting this up yourself if you can be bothered....ie, you set up a wee company to sell you back the vouchers...or something....

Thanks for the useful info in this thread, I will be looking into this tomorrow.





As to the "members of the community" who posted cr@p, I have edited that out :rolleyes: you know who you were..

Jeez get a life :rolleyes:

Puff

Sorry about that, i'll try not to do it again

Pete

FYI PTMW, our employer uses BusyBees as above. IIRC, shouldn't be too hard for your company to use BusyBees right now to get your vouchers up and running ASAP.