Tax free childcare payments

We may have mentioned this before – that is because it is has been a long time in actually being put into action.

The new scheme comes in from Spring 2017 but is being rolled out gradually. Main conditions to qualify are that the parents must be in work and earn at least £115 a week but not more than £100,000 each per year, that they must not be receiving free or subsidised childcare or childcare vouchers from your employer and that they have a child under the age of 12 (17 if they have disabilities).

The money must be saved in an on-line account to which the government will add an additional 20% and the money must be used to pay for childcare with a carer registered to receive a Tax-Free Childcare payment.

Contributions do not just have to be paid by parents.