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Paid childcare

Discuss everything related to paid childcare here, including childminders, nannies, nurseries and au pairs.

tax free childcare letter from hmrc

35 replies

wizzywig · 24/09/2016 12:01

Has anyone else received this letter? Basically it seems as though you set up an account and you put in 80% of chilcare costs into it, the government put in 20% and the childcarer then gets paid. Does anyone know if its only for paye folks? Thanks

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SuperSue77 · 03/01/2017 18:44

Thanks for your replies. I knew about the letters going out to providers and so looked at the website where they could sign up snd it allowed parents to register too, but now I tried looking at that site recently the signing up as a parent doesn't appear to be there, so I think you are both right that we can't sign up yet. Maybe the site I saw was for them to select parents to sign up for the trial. I've seen reports that it is likely to be from April so will wait until then, I'm sure they will communicate it. I've seen the calculator but already worked out that the new scheme will be better for us. Thanks again.

wizzywig · 02/01/2017 23:50

sorry just seen that nannynick posted back in october the calculator.

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wizzywig · 02/01/2017 23:49

yes i thought the same as nannynick. i dont know whether you could use the caluclator that we were given to tell us whether the hmrc scheme or childcare vouchers would be better for us, or if it is only for those chosen in the pilot.

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nannynick · 01/01/2017 22:22

I am not aware of the new scheme being open to parents yet except those selected for the pilot.

My guess is that if you have been told you can register interest, then that won't affect childcare vouchers. Once you start to pay in to the new scheme, then it would affect it as you can't be in both.

SuperSue77 · 01/01/2017 19:19

Just wondering if any of the original posters on this post are around to answer a question I have about this scheme? Some of the people posting seemed quite knowledgeable about the scheme. I feel I know a lot but have a question that I've not been able to find an answer to - I did e-mail HMRC but still no reply. My question is whether I can register my interest in the scheme online without jeopardising the Childcare Voucher system that my husband and I both currently use? We're keen to stay on the old scheme until we move to the new one, which works out more cost effective for us, but don't want to lose the benefit of the current scheme. Thanks.

nannynick · 01/10/2016 10:18

Rachelly123 - Use the Childcare Calculator www.gov.uk/childcare-calculator to see which scheme is better for you. You can not claim Tax Credits as well as Tax-Free Childcare.

Rachelly123 · 30/09/2016 21:41

Does anyone know if this has an effect on childcare tax credits. I currently relieve £350 per month toward my £900 per month childcare bill for dd aged 3. Would this scheme be in addition to tax credits or would it be a case of choosing which works best for me?

CrispyFB · 29/09/2016 10:40

I got the letter (four DC under 11 including one in nursery and one with diagnosed ASD) and we both work full time in the SE, but we aren't eligible. Sticking with childcare vouchers which we both use - hoping they don't go away any time soon! Our childcare costs match my salary :-/ but I'm working for my sanity, pension and future prospects.

MyCatIsTryingToKillMe · 29/09/2016 10:12

I got this letter and dismissed it as my DCs aren't in childcare, but now I've thought of holiday clubs so may check if my local one takes childcare vouchers...

drspouse · 28/09/2016 14:43

We get workplace nursery costs under Salary Sacrifice PLUS childcare vouchers (so it is very generous but before my DS went to school my pay packet was, er, a bit thin - as it's my workplace rather than my DH's).

nannynick · 28/09/2016 14:38

I care for an 11 year old, soon to be 12 year old plus their younger siblings so the new scheme may be better or may not depending on how my salary is split between the children. The new scheme seems to need a figure Per Child for childcare cost but with a nanny it is a cost per family. Wonder what will happen there.

Workplace Nurseries/ESC - is the amount you get any different to childcare vouchers?

drspouse · 28/09/2016 14:06

You can use childcare vouchers for holiday clubs (and some of those are open to over 11s) and PGL, though. And if you have a babysitter that takes them you can use them then (e.g. with a 12 year old that doesn't really want to be alone all evening).

It doesn't ask about workplace nurseries (I already knew the new scheme wouldn't work for us but thought I'd check) because most of our nursery care comes under this - we use vouchers for CM/after school club/holiday club.

Overrunwithlego · 28/09/2016 13:57

nannynick I am a parent currently using the childcare voucher scheme to pay for before and after school clubs, and holiday schemes.

I can see there are advantages to the new scheme - it is open to those whose employers don't offer vouchers and the self employed for example. For me the issue of only being eligible up until 12 is not an issue - I don't envisage needing childcare once they are in secondary school.

For me the calculator showed I save more with vouchers though, so I will stick with those as I have the choice. Of course if I were to move jobs after April 2018 when the voucher scheme closes to new applicants (even within the NHS where I am employed) I would have to come out of the voucher scheme and use the new system.

nannynick · 28/09/2016 12:59

www.gov.uk/childcare-calculator

Anyone can use the calculator to see which scheme is best for their family.

Yes, there are differences in terms of eligibility. New scheme is up to September following child's 11th Birthday.

I guess Government may be thinking that most parents use registered childcare for young children, not secondary school aged children.

nannynick · 28/09/2016 12:53

Those of you who have got a letter, are you a childcare provider, have been a provider but not currently active (though still registered) or are you a parent who has never been a childcare provider?

They are inviting parents to join the trial, around 1000 families are being looked for to test the new system. The aim is to get a good mix of families, varying number of children, ages of children, some self employed, others employed.

Providers are being signed up in batches, letters started going out earlier this month and will continue going out over the next couple of months. This should help to ease demand on the provider registration system and help have as many providers registered on the system come public launch of the scheme (date yet to be confirmed).

blondieminx · 28/09/2016 12:22

When I found out it added up to 4 years less support I decided not to take part in the trial.

Another example of spin over substance for "support for working parents" Angry

Overrunwithlego · 28/09/2016 12:07

I got one - it was about undertaking a trial of the system before it is officially launched, yes?

I did the survey it gave the link to. As part of that you did an online calculation, looking at your (and if relevant, your partner's) income, average monthly childcare cost, whether either parent's employer currently offered childcare vouchers etc. It then told you whether you would be better off under the new system, or with the existing childcare vouchers. For me it was better to remain on the childcare vouchers - and it therefore told me I was ineligible for the trial of the new system.

Anyone currently using vouchers will be able to stay with that scheme indefinitely. There must be some cut off date whereby new parents not registered for vouchers won't in future get the choice and will only be eligible for the new system.

blondieminx · 28/09/2016 12:02

I've had the same letter through. It seems that the new scheme is only for kids up to 12, whereas the salary sacrifice employer voucher scheme covers kids up to 16?

So for parents like me, where I work and have one child, I'd get 4 years LESS tax savings?! Shock talk about giving with one hand and taking away with the other!

wizzywig · 24/09/2016 23:11

Ooh thanks nannynick. My partner does earn over £115 a week. Looking at the link, Ill have to get my nanny ofsted registered too

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nannynick · 24/09/2016 22:34

www.turn2us.org.uk/Benefit-guides/Tax-Free-Childcare/Can-I-get-Tax-Free-Childcare

Looks like with Carers Allowance you could still have a Tax Free Childcare account as a parent, if you have a partner who is earning over £115.20 per week.

nannynick · 24/09/2016 22:13

Income cap for Tax-Free Childcare is per parent. Once either parent earns over the threshold, the family are non-eligible.

nannynick · 24/09/2016 22:11

Yes, for disabled children are eligible longer and higher amount.

Yes, nannies who are approved/registered can be used by parents on this scheme, just like they can for Tax Credits or Childcare Vouchers.

wizzywig · 24/09/2016 21:48

Childcare providers includes nannies?

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wizzywig · 24/09/2016 21:47

Adding to that, im guessing if you claim carers allowance as i do, i cant take part in this as i cant earn more than £110 a week after childcare is taken away

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