Childcare Voucher Scheme / Tax Credits

In the 2013 Budget, the government announced they would introduce a new childcare voucher scheme to launch in the Autumn of 2015. This is to be completely tax free and is said to potentially save many households hundreds of pounds in tax per year, however not everyone will be better off under these new arrangements and will be better off under their existing scheme. You will be able to get examples on official government websites to find out how this will effect the amount that you can get, and what you will be better off doing.
Under the new scheme, 20% will be paid toward family’s annual childcare costs by the government. This will be open to all parents who work a minimum of 8 hours a week, either employed or self-employed. All eligible parents will be able to join this scheme, unlike the existing one that require your employer to be on board for you to take part.
Other qualifying factors are that you must have at least one child under twelve, and if there are two parents then both must be working. You should not be claiming Tax Credits or Universal Credits either. To find out more about whether you will be eligible, simply visit an official government website.
Whether you are currently getting any help with childcare costs or not, you are required to register for these new credits before they come into play in the Autumn of 2015, or you will not be able to claim them at all.
Many parents actually like the fact that the payments are taken directly from their salary, as this helps them with their budget. Whether it be childcare vouchers that are best for you or the new tax-free credits, either way, it is important that parents speak with their employer now about signing up to this scheme in order to be included in the roll out for the new nursery credits.

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