Phased roll out of Tax-Free Childcare from April 2017

The Chancellor confirmed in the Spring Budget that Tax-Free Childcare for children under 12 will be gradually rolled out from April 2017.

Under the scheme the relief will be 20% of the costs of childcare up to a total of £10,000 per child per year. The scheme will therefore be worth a maximum of £2,000 per child (£4,000 for a disabled child). It is expected that all parents in the household will have to meet the following conditions:

• meet a minimum income level based on the equivalent of working 16 hours a week at National Minimum Wage or National Living Wage rates;
• each earn less than £100,000 a year; and
• not already be receiving support through tax credits or Universal Credit.

The existing scheme, Employer-Supported Childcare, will remain open to new entrants until April 2018 to support the transition between the schemes.

The Government has also confirmed that from 1 September 2017, the free childcare offer will double from 15 to 30 hours a week for working families with three and four year olds in England. In total this is worth up to £5,000 for each child.

If you would like more information on the phased roll out of Tax-Free Childcare please contact our Payroll Partner, Graeme Sheridan, on the details below:

Graeme Sheridan
direct dial: 01942 292506
mobile: 07712 679064
email: graeme.sheridan@jsllp.co.uk