tax free childcare letter from hmrc

Also important to Nate the old scheme is salary sacrifice , the new one isn't.

For any childcare providers reading this who don't know about the Tax-Free Childcare scheme, this document from HMRC explains a little about it: www.gov.uk/government/news/tax-free-childcare-top-things-childcare-providers-should-know
Providers are being written to during September-November this year so that they can register on the scheme before parents start to signup. By having providers register first, it enables parents to quickly find their providers details on the new system. If you don't sign up then parents wanting to use the scheme won't be able to find you on the system when they try to sign up, which may mean they move to a different provider (though I would hope that they would tell you first so that you were able to register).

Mumsnet has information for parents about Tax-Free Childcare: jobs.mumsnet.com/article/tax-free-childcare-10-things-parents-should-know/

Important: Parents can not be on both schemes, they will need to choose.

Parents with salaries £100,000 plus are exempt from Tax-Free Childcare but they can continue with childcare vouchers. If they earn slightly over £100,000 but pay into a pension their taxable pay may be under £100,000 and thus will be eligible for Tax-Free Childcare.

Other eligibility criteria applies.
Age of child is important, they no longer qualify once past September following their 11th Birthday. Eligibility is checked every 3 months, this helps reduce admin rather than doing eligibility every week/month.

www.gov.uk/childcare-calculator

Tax-Free Childcare scheme starts in 2017 and is being rolled out, meaning that parents with babies will be offered it first. I expect it to be from April but the date has not been set in stone yet. The scheme is being piloted over the next few months.

The new scheme is better for parents with several children and for parents who are self employed.
The old scheme is likely to be better for parents of one child where both parents work and are both already getting maximum childcare vouchers.

Each family is individual though, this there is a calculator for parents... will find a link to it.

The old childcare voucher via employers is better as its per parent. This new scheme is per child.

The old system childcare voucher is better as its per payment, the new scheme is per child.

I have not yet seen this letter but I know they are being sent out to registered providers.

It enables parents to save money, they pay into the scheme and the money gets topped up then sent on to you as the childcare provider.

It can be used to pay for registered or approved childcare. In what capacity are you a registered/approved childcare provider - nursery, childminder, nanny - and in what country are you?

I know the new system is supposed to be for self employed people too, but I haven't read all the paperwork yet.

Not sure what happens if you don't pay any tax.