Making Tax Digital (“MTD”) seems to be a theme this month.
Tax free childcare is almost here! This has been the subject of several changes since it was first proposed way back in 2013.
The current position is as follows:
1. The scheme is based on an on-line account, into which you pay money and from which you pay for childcare.
2. The account can be opened by parents with children aged up to 12, or 17 if they have disabilities.
3. For every 80p that you put into the account the government will add a further 20p.
4. To open the account each parent must be in work and earning more than £115 per week and less than £100,000 a year. Neither must be receiving free or subsidised childcare, or be receiving childcare vouchers from an employer.
5. The paid carer must be registered to receive a Tax-Free Childcare. However, as with the rest of MTD there is still no certainty of when this scheme will start. It will be made available to people with younger children first. It is anticipated that some parents with the youngest children may be able to register sometime this spring, although the exact date is not yet available.
How long parents of older children will have to wait to register is even less certain!
Watch this space!
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