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.
tax-free childcare, childcare vouchers, childcare account, tax childcare account, childcare choices
19677
post-template-default,single,single-post,postid-19677,single-format-standard,ajax_fade,page_not_loaded,,qode-child-theme-ver-1.0.0,qode-theme-ver-10.1,wpb-js-composer js-comp-ver-4.11.2,vc_responsive

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 [https://www.gov.uk/childcare-calculator] or check out the childcare choices website www.childcarechoices.gov.uk

“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.

Payroll Solutions

Do you struggle with managing your payroll? Find out how we can help you.

We offer a payroll solution to suit you and your business. Whether you have 1 or 100 staff we will have a package to suit you.
Find out more about payroll here or contact us now to find out more on 01370 646943 or email us here.