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Tax Free Childcare (TFC)

08 April 2014

What is Tax Free Childcare (TFC)

Tax-Free Childcare is a proposed government scheme which may replace the existing Childcare Voucher Scheme in 2015. Under the new scheme families could receive up to 20% of their annual childcare costs paid by the government.

How does the New scheme affect me?

Parents

This will depend on your individual circumstances. If you are currently in the Employer supported childcare voucher scheme you don’t need to do anything now. In autumn 2015 if TFC is proposed you can decide which scheme will be more suited to you and your family. Once TFC is in place you will not be able to join the Employer supported childcare voucher scheme this will only be open to existing members. You should consider joining the scheme now so when the times comes you have that chance to make a choice. However if your employer is not currently part of the the current scheme then why not tell them about it! (http://linkingup.org.uk/employer)

Employers

Under the new TFC there is no part for employers. Where in the current employer supported childcare offering your employees this benefit also means tax savings for you!. if you are part of the employer supported childcare once changes are applied to TFC you wont be able to accept any new joiners.

Childcare Providers

There is isn’t much change for childcare providers under TFC parents will go to their online account and set up one off or regular payments to you. If parents are still part of the employer supported childcare you can still accept childcare vouchers as normal.

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