1st Friday
Tax Chat

Childcare – was a new scheme being introduced?

Childcare – was a new scheme being introduced?

You might remember mention a few Budgets ago of a new scheme for providing tax-free childcare to parents…what has happened to this?

The new scheme was to be introduced from Autumn 2015, but due to a legal challenge by some of the existing childcare voucher providers has now been delayed until 2017.

New scheme available to all working parents with children under age 12. Government will provide 20% support on childcare costs up to £10,000 per child, max. £2,000 per child.

Both parents living in household must be employed and neither can earn in excess of £100,000. Both must have minimum earnings equivalent to 16 hours at national living wage.

Parents can choose to remain in the existing scheme if they prefer or to change to the new scheme.

If you would like further information please contact Lesley Sutton on 01484 538351 or email

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