April #Tax Changes – The #Government is

April #Tax Changes – The #Government is planning to reduce the level of #tax relief on #Childcare Vouchers for higher and additional rate tax-payers who sign up after 6 April 2011. Currently higher and additional rate tax-payers can save more than basic rate tax-payers. These changes will mean that all new recipients of Childcare Vouchers receive the same level of income tax exemption, which is approximately £11 per week. Basic rate tax-payers will not be affected by the changes.

What do I need to do?
If you are already in a scheme you don’t need to do anything, even if you are a higher or additional rate tax-payer. All parents currently using Childcare Vouchers will not be affected by the changes, as long as they remain in a scheme through their employer.

Tell a friend!
If you know someone who is a working parent and uses registered childcare but doesn’t use Childcare Vouchers, tell them about the changes to ensure they don’t miss out next Spring!
If a higher rate tax-payer has signed up to a Childcare Voucher scheme before 6 April 2011 they can save up to £1196* a year in tax and NI. However, if they register after 6 April 2011 they will see their tax and NI savings drop by around 50%, to approximately £624** a year. Basic rate tax-payers will continue to save over £900** a year on their registered childcare costs.

Contact your usual ABG contact partner if you require clarification on any of the above.

One thought on “April #Tax Changes – The #Government is

  1. I think it is a prominent point that any companies who have not joined the scheme take advantage of this stance too. The sign up is a very quick process usually, however, getting your employees to join, could take longer. I think it is vital that companies join up ASAP to give their employees enough time to join the scheme.

    Childcare Vouchers information for employers

    If I were a company who hadn’t already joined I would sign up today and start pushing it to all my employees to ensure that I got the maximum benefit out of joining! Don’t forget for higher rate tax payers you could save up to £800+ as a parent, just think how much a company could potentially save!

    How much will parents save by joining the Childcare Vouchers scheme

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