Tax deductibe childcare: please sign this e-petition(42 Posts)
In Europe parents spend an average of 13% of salaries on childcare; 5% in Sweden and 27% in the UK. One way the UK Government can reduce the burden of childcare costs is to make childcare costs 100% tax deductible for all workers. Many UK workers - including the self-employed - do not have access to a childcare voucher scheme (which currently gives basic rate tax payers a tax exempt entitlement of Â£55/week).
I know this is an old thread but the petition is open until July 30th so I'm bumping it up to get more interest.
Good luck with it.
Signed - about 85% of my salary goes on childcare and I'm a high earner. It's utterly ridiculous.
I think the limit should be raised too, however lots of employers are pulling out of the scheme since realising they employees will claim the max vouchers whilst on maternity leave at the companys cost whilst on SMP.
Close this loophole and more would sign up.
Not sure re self employed people being included, creative accounting already leaves most paying little of any tax so probably not worth it hence not being included in the first instance.
Now I have been forced (by one of my clients) to set up a limited company, I can give myself childcare vouchers.
I've been self-employed for over 2 years but didn't set up the ltd co until the summer. Essentially nothing has changed - I'm still the only person working but I couldn't get CC vouchers before and now I can. How bloody bonkers is that?
That would work for SE people but not PAYE. So the fairest system is vouchers or equivalent for those on PAYE and an equivalent amount from the tax return for SE people. Why they didn't build in the option for SE vouchers I will never know.
The issues then arises of whose salary it comes out of but that's between the parents really....
I am confused - as someone who is self-employed, I have to submit yearly tax returns and accounts. Those accounts and the return contain all my income together with all my taxable expenses. Why would it be so complicated to allow me to include as a taxable expense my child care costs? Obviously with supporting documentation? It strikes me that it would be an exceedingly simple tweak to the existing tax rules and would involve one more subtraction sum before reaching my taxable income level. Could someone explain to me why there would be any problems in approaching it in this way?
Italiana, you said "I have signed the petition to raise c/vs from £55 to £75 but if you want tax breaks then I want something to help my business too..fair deal?"
So you are looking for govt funding to go into your business (directly). And I think it should go to the parents.
So, that would be funded education, not childcare. I accept there is inevitably some overlap. But I know many a primary teacher who believe he/she is not there to provide free childcare at the patents' convenience and feel that likewise the government should not be taking credit for helping with my childcare when in fact is is state funded education.
My children's 3/4 funding was in fact provided by the primary they now attend.
Thank you Fraktion I did mean the 3/4 year old free education (£3.50 ph in my area)
Strix i'd like to reassure you I get no handouts from the govt but work hard to sustain my small business and provide a good service to the parents and the children
Hope your e-petition is successful
I suspect free entitlement = funded hours for 3/4 year olds (which incidentally big disadvantage for some providers because they can't offer it).
And at the risk of derailing the thread again yes, nannies do things CMs don't do. Some CMs do things others won't. Parents sometimes don't want to use a particular form of childcare. It's an argument for demand side funding because putting money with the parents increases parental choice!
Consideration of all the different forms of childcare and how different funding types affect them is important. There are various forms of tax relief some of which would mean a sweeping reform of the current system and others which require subtle tweaks.
Deducting a larger amount at source is a simple administrative change. Allowing SE people to buy vouchers before submitting their tax return could work.
Supply side funding freezes out any childcare which isn't a CM or nursery/preschool and makes ad hoc arrangements difficult.
Making childcare wholly tax deductible where for example you pay up front and then get a reduced tax bill the following year would be very complicated.
So on balance strix has the best all round solution even if it's less advantageous for certain types of provider.
How is this free entitlement when all that is being asked for is the ability to set child care costs off against tax, so that the cost is coming from gross earnings rather than after tax earnings?
What on the world is my "free entitlement"? I'm not aware I have such a thing. You are the one looking for a handout to support your business. I wonder if the govt would consider paying me to go to work??!
But why should the govt be responsible for your silly posts? I'm sure I can think of a bone to pick with them.... Oh.... I know.... Tax deductible childcare. We could talk about that!
Yes Strix I will repeat again and again...i won't subsidise your Free Entitlement and thousands think like me !!
I am simply following a converstion about c/ms...of course I know there are other types, parents choose what works best for them, highlighting what we do is what I am doing because many parents do not know
Do you feel that people without children should get concil tax reduction so they do not contribute to school funding...or those who do not drive need not contribute to roads?
What is an Ofsted sponsored group hug at the local CoE? you definetely lost me there???
some rather cross people here I feel! take it out on the govt not me...
Oh oh... Deviation. Are we playing Just a minute because I so LOVE that game. However, I don't think you have any room to talk.
Bzzzzzz... Repetition! On how many threads can you raise one subject?
Italiana - this isn't a thread about CMs vs other forms of childcare. CM care doesn't work for me at the moment for a whole host of reasons - parents should be able to choose the form of childcare that works best for them and their children, whatever it is. And tax breaks that go across every type of childcare is the best way of achieving that.
So that's a "no" then to staying on thread topic. Oh we'll meander away... Perhaps I'll bang on about tax deductible childcare when you want to advertise your OFSTED sponsored group hugs at the local C of E.
No I'm a SAHM, I am already a 4th class citizen.
When DH can share his income 50/50 with me and stop paying higher rate tax, then and only then will I give a monkeys about tax breaks for childcare.
A big advantage of tax deductibility is that it legitimises the child carer
a lot of nanny employers play the 'self employed' card - effectively removing the nanny from the formal system and reducing their access to pension rights/employment rights etc
I should imagine there is a similar impact on CM's - it would make it much harder for unregistered CM's
If child care costs came out of gross salary people would be able to pay more for it as well
Fraktion Are you talking about a nanny when you refer to travel with family, nursery duty, do you mean pick ups? and batch cook...cook for the family?
C.ms do shift work, early and late start, overnight, private schools pick ups, what are restricted holidays? we take a few weeks when parents have up to 25 days if not more?
Nurseries are feeders but do not take to school or pick up or do holiday care
Flexibility..that magic word, what does it really mean? we have to be flexible because employers are not and parents work all hours and children are in care long long hours?
C/ms should work all hours...try to get a nursery to open at 7am and see what happens when parents are 5 minutes late
Group care is also enjoyed by c/ms when we have playdays (I also worked in a day nursery for a while...never again)
What partnership do parents have with c/ms that is different from nurseries? mine is purely professional and I do not like be bossed around!
Strix I think the message is the govt invests 7bn in childcare so it has somehow got to get to the parents...the free entitlemnet is a benefit to parents which we subsidise
Academies and free schools ...that is deviating from the subject..
I have signed the petition to raise c/vs from £55 to £75 but if you want tax breaks then I want something to help my business too..fair deal?
Meant to say "...government will listen."
Erm... Can we stay on topic? Tax deductible childcare for all. Please sign the petition. I'm sure the government will. Ah... Ignorance is blss. :-)
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