Tax-Free Childcare - A reprieve for vouchers - EA Assist
Find out more about childcare vouchers, tax-free childcare account. What are you payroll obligations. How does it work. A reprieve for the cancellation of the old employer-based system. EA Assist offers payroll and bookkeeping solutions in Diss, Norwich, Great Yarmouth, Attleborough, Wymondham and Thetford.
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Tax-Free Childcare – A reprieve for vouchers

tax-free childcare vouchers payroll solutions

Tax-Free Childcare – A reprieve for vouchers

Childcare Vouchers

A reprieve for employer-backed childcare voucher scheme

BBC News
has reported that Education Secretary Damian Hinds made the concession during a Commons debate.
The employer-backed voucher scheme, used by up to 450,000 parents, was due to be closed to new entrants next month but will now have a temporary reprieve.

Tax-Free Childcare

An alternative system of tax-free childcare introduced by the government has suffered a succession of problems.

Ministers announced in 2013 that the employee scheme – in which staff in participating companies can receive childcare vouchers worth up to £55 a week in lieu of their salary – would effectively be replaced by a system in which parents have to open an online voucher account and have their payments topped up by the state.

But the new system, which provides support of up to £2,000 a year, has been beset with problems. Because of glitches on the HMRC website, thousands have been unable to either set up tax-free accounts or access the money they had paid into them.
If you want to find out what you are entitled to check out the Childcare calculator here [] or check out the childcare choices website

“I have heard the concerns that have been raised about this and the timing, and I can confirm that we will be able to keep the voucher scheme open for a further six months to new entrants.”
Speaking in Parliament, Mr Hinds said:

Those unable to access the tax-free childcare payments have been paid a total of £966,666.  Nearly £40,000 in compensation has been paid to parents for inconvenience and expenses incurred.

Read our blog here about the new system here.

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