should higher income working parents get child care tax relief

[zippitippitoes]

..or would that mean the benefit would be spread so thinly that low income families would suffer?

If granny or sis wants to look after the kids then should they be able to be paid through government subsidy? Without formally becoming registered childminders.

\link{http://www.timesonline.co.uk/article/0,,17129-2233371,00.html\ david cameron on tax breaks for higher earners on childcare}

The current system does apply to all earners, which means it benefits higher-rate taxpayers more (as they save 40% rather than 20%, iyswim). The current tax break on childcare only applies to the first £200/month of childcare, too, which isn't really very useful for working mums.

And I don't think informal childcare should qualify.

wasn't David Cameron talking about reforming the current family tax credits which has a threshold of about £58 K as opposed to the childcare voucher scheme which everyone, regardless of income ,is eligible for? dh's practice has recently started the voucher scheme and it's been fab for us

The current system does NOT provide relief for all. I don't get squat. Not a penny.

If David means it, this may be the motivation I need to go get citizenship so I can vote for him.

That's beacuse the current system is there only to lift families above the poverty line. If you're not there you don't need it. It's not a perk.

So no, I don't agree. Tax cuts for the better off. I wondered how long before traditional tory policies would emerge.

but it goes well above the poverty line - ( if it's still £58K)

Don't agree either - its there for families who really need it, as MT says, not a perk. Would hit the pple who really really need it.

Well, if you make enough to pay the childcare and have nothing left over, then you make too much for to qualify for help, even though you are working for nothing. Seems unfair to me. If we want people to go back to work, we need to make childcare affordable.

The current system is a shambles and should be ditched
They should make a certain amount of childcare tax deductable no matter what you earn
They should then raise the thresholds for the different tax bands and allow you an additional tax allowance per dependent child

But, I do want to know who chose the word "mothers", Cameron or the media. I assume father deserve the same credits as mother.

I noticed use of mothers too Uwila and I thought that if men claim for the expenses of a mobile phone than in fact women can too..

I presume he is referring to the childcare element of working tax credit which drops off under 30,000 to all intents and purposes doesn't it?

I thought it probably did fio but wasn't chancing it

As someone who has spent a lot of the last two years looking after dgs for free I would have appreciated the chance of being paid, but i think it would probably be grossly abused if informal care was included naive to think otherwise

I do think that the subsidy should go to the low income families though unless someone can convince me otherwise

Of course it should apply to all. Childcare should be a public good like NHS, transport and schools.

Full time childcare in London will cost you some £21k per year. I think every penny everyone spends on childcare (assuming the children are in childcare so that the parents can go to work) should be tax deductable. So, if you earn 50k and you spend 20k on childcare, then you should be taxed on 30k.

Childcare, for most of us, is an expense of going to work. Why is that different from a mobile phone (or computer, or the cost of renting office space, etc.)

Fairymum, at first glance I think that is a fantastic idea. But, then I look at the state of the NHS and other programs run by the government, and I have to question the quality of care that would be on offer. I do not want state run childcare. I want to choose my childcare, but I want it to be affordable.

This is a huge bugbear for me. Neither myself or dp work for employers who do the childcare voucher system - so we don't get any tax relief. The only 'benefits' we receive is child benefit for our 2 dd's.

I definitely support the idea of tax relief on child care costs - I'm paying for these costs out of my taxed income.

The cost of this tax relief should be in addition to the support given to lower income families - I actually wouldn't support this if the pot would be spread more thinly.

I think if childcare costs were eligible for tax relief it would help people work/return to work (if they wanted) as sometimes it's a case of what's the point of working when childcare is so expensive.

You never know it might encourage larger families so these children can pay more tax and NI to suppport the pension pot for us in old age.

It would be fab if childcare was as accessible and 'cheap' as it is in many parts of Europe - but it's not! So therefore giving tax relief on childcare makes it more affordable.

While I do not agree with Uwila's right wing politics in general I do agree that it should be made compulsory for employers to offer childcare vouchers rather than the current unfair voluntary system. Although my work offer them, DH's doesn't.

Uwila , oh hell yes! Private childcare I want too, but I want it available and affordable to all like any public good we pay taxes for IYSWIM.
At the moment the biggest problem isn't the tax breaks for higher earners, but the fact that there isn't enough good quality affordable childcare available in this country. I think that needs to be addressed first.

I agree with Bozza that it should be made compulsory that employers should offer the childcare voucher system. Mine doesn't and I work in Local Government and you would have thought they would (although currently on maternity leave )

it's just more tinkering round the edges imo. My cousin lived in Greece for 20 years - married into a wealthy family, had 2 children. When she wanted to work, she sent the children to the free local nursery.

I agree with whoever says all childcare should be tax deductable for everyone.