The new £2k tax concession (per child) only applies to childminders and nurseries (or other regulated childcare) and yet for working parents working long hours often a nanny in your own house is the best and only option that works and it costs you less than 3 places at a nursery.
Mind you £2k a year when full time childcare in London is £14k in a nursery or £20k+ if you have a nanny is a drop in the ocean.
www.theguardian.com/money/2014/mar/18/pm-pitches-families-childcare-cash :-
"Two million families will be offered up to £2,000 a year of state help per child towards the costs of care, David Cameron and Nick Clegg will announce on Tuesday.
The support package – one of the coalition's central election offers to middle-class working parents – will be available, when launched, for anyone with children up to the age of 12 instead of the previous cut-off age of five.
The £2,000 maximum is to cover 20% of the costs of childcare up to an annual maximum of £10,000 a year. No extra support is available for people with more expensive provision.
The package, originally unveiled a year ago, was to have been worth a maximum of £1,200 per child. It would be introduced in a single year in autumn 2015, rather than being phased over seven years. An extra £50m has also been found to provide extra help for children aged three or four from the poorest families.
Cameron said that "tax-free childcare will help millions of hard-pressed families" while Clegg highlighted "the £50m cash injection for early education providers to support those children who need extra help in their early years".
However, Labour described the package as "too little, too late".
Full-time childcare costs for a family with a two-year-old and a five-year-old are estimated at £11,700 a year by the Family and Childcare Trust.
The overall cost remains at £750m a year because the Treasury has revised its estimate of the number of families likely to be eligible for the scheme down from 2.5 million to 1.9 million. Ministers have also responded to complaints that the package would punish poorer parents in receipt of universal credit not paying income tax by agreeing they will receive help with 85% of child care costs, rather than the previous plan of 80%, a move that could save low-income families as much as £1,500 a year.
The scheme will be available to families working part-time because of the low minimum earning threshold of £50 a week, but is also on offer right up the income scale to parents jointly earning up to £300,000 a year.
And from the Times:
" The scheme, to be jointly run by Revenue & Customs and National Savings & Investments, will enable working parents to deposit part of their income into childcare accounts online. For every 80p paid in, the Government will add 20p up to a maximum of £2,000 per child. Only registered childcare providers will be able to be paid from the accounts which the Government claims will simplify payments.
Ministers agreed to raise the limit from £1,200 after receiving evidence that the average cost of full-time nursery care was almost £9,980 a year. The Government has made the scheme more accessible to part-time workers and those running their own businesses. Parents will have to earn a minimum of £50 a week and work for at least eight hours to qualify. "
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The new anti nanny tax break......
4 replies
LauraBridges · 18/03/2014 09:24
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