What’s changing in the nursery ?
One of the largest expenses for many people employed and self employed is Nursery fees for those little workers and business owners of the future. Change is coming and Beans thought it would make sense to sum up these changes.
The government has introduced a new scheme called Tax-free Childcare that allows parents to apply for payments that cover 20% of childcare costs. From 21st April 2017 the scheme is open to parents of children under 4 and parents of disabled children. Before the end of 2017, the scheme will be expanded to also include parents of children up to the age of 12. You must be working (and if you have a partner they must work too unless unable to), and you must not be receiving support through tax credits.
Unlike the childcare voucher system, it doesn’t rely on your employer setting up a scheme, and it is available to self-employed people too. It is important to calculate or have someone calculate on your behalf the benefit of the new scheme over the existing voucher scheme as a choice needs to be made to end one scheme and start the new one and you can’t then go back.
People who are already using the childcare voucher system will be able to continue using it if they wish. Parents cannot use both childcare vouchers and Tax-free Childcare. The government proposes to close childcare voucher schemes to new claimants in April 2018. If you use a workplace nursery and get tax relief on the costs of childcare there, this won’t change.
Beans is here to advise and help and do the maths around the new versus the old schemes so pop in any time or call if you are confused.