New Government Tax-free Childcare scheme
Turn2us is proud to be the first organisation to partner with HM Revenue and Customs (HMRC) to give parents detailed information about the government’s new Tax-free Childcare scheme. This additional functionality will be added to both our website and our Turn2us Benefits Calculator on 23 August.
The Gov.uk website will also host a new Government “childcare calculator" which will be able to calculate whether someone is entitled to Tax-free childcare and work out which childcare scheme would be the best one for them. It will do this by comparing how much you would receive through Tax Credits/Universal Credit; Tax-free Childcare or Childcare Vouchers.
What is Tax-free Childcare
Tax-free childcare is expected to start in early 2017 and will replace the Employer Supported Childcare Scheme, sometimes known as the Childcare Voucher Scheme, which will be phased out. The Tax-free Childcare Scheme will be administered by the HMRC, not by your employer. As well as full-time employees, parents who work part-time or are self-employed can also claim.
Under the new Tax-free Childcare scheme, the Government will contribute £2 for every £8 you pay into an online Childcare account. It will put in a maximum of £500 every three months for each child – or £1,000 if your child is disabled.
Unlike the current childcare voucher scheme, which involves a person’s employer, the new system will allow you to pay your childcare costs directly into this account - and the Government will 'top-up' the account with their contribution. The money will then be paid directly from this one account to your approved childcare provider.
Find out if you qualify for Tax-free childcare
Find out if you qualify for Tax-free Childcare by using our easy-to-use Benefits Calculator. The Benefits Calculator will tell you what welfare benefits you are entitled to and whether you are likely to be entitled to Tax-free childcare. You can then click on the link to take you to the childcare calculator to find out which scheme would be best for you.