Childcare Voucher changes delayed!
As you will be aware from our previous Payroll Updates the Employer Supported Childcare Voucher Scheme (ESC) was due to close to new entrants on 5 April 2018.However, following a debate in the House of Commons, Education Secretary Damian Hinds has announced a six month extension to the Workplace Voucher Childcare system. New entrants now have until October 2018 to join the existing ESC Scheme.
The ESC voucher scheme may be more beneficial for many employees (single parents, families where just one parent works and families where both parents are working and who are basic-rate taxpayers) than the new Tax-Free Childcare Voucher Scheme (TFC).
Childcare vouchers under the existing ESC scheme are available to parents of children up to the age of 15 as opposed to The New TFC voucher scheme which is only available for children up to the age of 12 (except for children with disabilities where it goes up to age 17).
The beneficiaries of the new TFC Childcare Scheme may be higher-rate taxpayers with two or more children. Anyone can use the TFC Childcare Scheme provided they meet the eligibility criteria, which includes both parents working. The new scheme is completely independent of employer participation.
Any employee who decides to take up the new TFC voucher scheme must opt out of their Employer Supported Childcare Scheme immediately as they cannot be in receipt of both the ESC and TFC. Any funds already held within an employee’s existing ESC scheme will remain until the balance has been used.
If you would like more information regarding Childcare Voucher Schemes and which scheme may be best suited to your particular circumstances please contact our payroll team:
direct dial: 01942 292506
mobile: 07712 679064
direct dial: 01942 292528
direct dial: 01942 292557