Tax free childcare scheme, also available for self-employed
In Autumn 2015 there is due to be a new tax-free childcare scheme to support working families with their childcare costs replacing the current salary sacrifice” scheme.
20% Government contribution
The new scheme is simple; for every 80p contributed by the parents, the government will contribute an additional 20p (so 20%). This is to a limit of £10,000 per child for annual childcare costs so worth a potential £2,000 per child per year. Initially, this scheme is available to cover childcare costs for under 5 year olds but over time it will increase for up to 12 year olds.
The new scheme will be available to the self-employed
A few other points to note:
- Parents can choose their own voucher provider
- Vouchers can be used at any Ofsted regulated childcare centre
- To be eligible neither parent can earn over £150,000 per year
This will be good news to many of our doctor and dental clients who have families