Less than 100,000 people used the Government's Tax Free Childcare scheme in December, official figures show. An estimated 91,000 families have taken up the benefit, which gives parents a £2 bonus for every £8 they spend on childcare a year. That's out of the 1.3 million people that qualify for the help - suggesting a huge flaw in the system could be leaving many hard-working families worse off. It follows a pause in the roll-out of Tax Free Childcare after it went live in 2017, following dozens of complaints over technical glitches online that left parents unable to pay their childminder. More recently, huge delays on the website in December meant many nursery providers weren't paid - leaving parents to pay late payment fines without their knowledge. Now almost a year after teething issues were fixed, overall take-up is still far lower than anticipated. In total, an estimated, meaning only around one in 14 eligible families has done so - just 22% of those eligible. "Given … [Read more...] about Just 1 in 14 families have taken up Tax Free Childcare since launch
Childcare tax free scheme
A GLITCH on the government's tax-free childcare website left a number of parents unable to pay carers and nurseries this week - leaving them at risk of late payment fees. Childcare Choices - the website by HM Revenue & Customs (HMRC) that gives financial support to parents - has experienced delays on payments, with some parents unable to process money while others were told transactions had been made, even when they hadn't. In fact, the relatively new website has been riddled with technical difficulties since its launch in April 2017. At one point, the problems were so severe that MPs launched an investigation into the website as part of a wider look at childcare costs in the UK. The tax-free scheme is aimed at working mum and dads with children under 12 years old or under 17 years old if they're disabled. HMRC has told us this week's glitch has now been fixed. But parents, nurseries and childminders complain they've been "left in the dark... [and] massively in the red". And … [Read more...] about Tax-free childcare error leaves parents facing fines and childminders unpaid
FIND out how you could be owed up to £2,000 in tax. By Christine Younan / Published 6th November 2018 FREE MONEY: Are you owed £2,000 in tax? (Pic: GETTY STOCK IMAGE) Millions of British parents could be missing out on a tax break of thousands of pounds a year.Tax-Free Childcare is a scheme which was introduced last year to make it cheaper for parents to pay the sky-high cost of childcare.But the Government pulled £600 million out of the scheme as thousands of Brits failed to claim any cash back.Most people who work at least 16 hours a week, have children aged 11 or younger and earn less than £100,000 are entitled to claim. Related Articles Money Saving Expert warns you must do this NOW to avoid £100 fine Money Saving Expert Martin Lewis reveals five ways the Budget could IMPROVE your finances Money Saving Expert Martin Lewis reveals best ISA account – you get £1,000 FREE annually The Government refunds claimants … [Read more...] about Millions of Brits are missing out on tax break of up to £2,000 – are YOU one of them?
News / UK by Press Association 06/11/2018, 12:03 am FacebookTwitterWhatsAppEmail Send us a story Sign up to our Daily newsletter Spending on a Government scheme intended to help working families with the costs of childcare is set to fall by hundreds of millions of pounds, Labour has warned. The party said analysis of Office for Budget Responsibility (OBR) forecasts, released with last week’s Budget, showed spending on the tax-free childcare scheme (TFC) was projected to be down £600 million over the next four years compared with the last forecasts in March. Under TFC, HM Revenue and Customs tops up the sum parents pay for childcare by up to 20%, up to a maximum of £2,000 per child per year. Shadow education secretary Angela Rayner said the latest figures showed families would not get the support they need. “Austerity is clearly not over for hard-pressed families,” she said. “The Budget has completely failed to provide children … [Read more...] about Labour warns of £600m fall in tax-free childcare
This Thursday, the government will close the childcare voucher scheme to new entrants, replacing it with the new tax-free childcare scheme. Charlotte Cowgill, Legal Adviser at DAS Law, tells you what you need to know… Why is the government making this move? The new scheme is intended to be a fairer and better targeted system than childcare vouchers, and will mean that all families can get support regardless of their employer or whether they are self-employed. Support is based on the number of children in a family, rather than number of parents as seen in the current childcare voucher scheme. Parents who wish to continue to enjoy the benefits of childcare vouchers must be existing members or have registered and received vouchers prior to the October 4 deadline. What is employer supported childcare? Previously known as the childcare voucher scheme, it enables working parents to sacrifice up to £243 per month of their salary in exchange for childcare vouchers. The … [Read more...] about Advice as childcare voucher scheme ends