New childcare tax free scheme

[Limpetsmum]

Am I right in thinking come autumn I'm going to save a fortune in Childcare. Currently have a nanny for three kids (4 days a week) + one day nursery.
I pay £2000 per child nursery x2 = £4000 (one child gets free 15 hours) +
Nanny = £20,000/year for four days a week.
Total = 24000

Does that mean I'll get £4800 (20% of 24000) from government?

Currently all I get is about £900/year from Childcare voucher scheme. It seems too good to be true.

Just want to check that scheme covers nanny pay and not just for nurseries.

Government tax rebates for those that can afford nannies. WTAF?

Nice username uncommon

Marking my place. I also have 3 DC, currently working part time with the possibility of full time coming soon but will need after school care for at least 2 DC so thinking of a nanny to be there after school for all 3.

Marking place also.

I'm pretty sure it's up to £2,000 per year, per child

Limpets I was looking at this - it Seems to be how it appears, but Is it based on the current government still bEing in place? ?

I notice it says you can also set up the accounts for others to pay in eg grandparents, and also set it up when pregnant and start to save towards childcare then.

Sounds too good to be true.

This confuses me - is it a tax rebate or is it like childcare vouchers? So would you save money per month or just get it back at the end of the tax year?

I'm lost - what does marking place refer to?

Uncommon sense - I think new Childcare scheme proposal is great.
Currently I take home £250 after paying my Childcare fees. Just because someone has a nanny or chooses to spend the majority of their income on their child's upbringing does not mean we're rolling around in cash! Comfortable financially -yes. Rich - no. Hard working - very.
Our mortgage is less than half our Childcare costs!

Baby giraffe86 - will be voting conservatives if that's the case. think they've won my vote with that kind of saving!

A nanny is cheaper than nursery for two where I live.

OP - you will get a max of £4K a year.

You can only claim the tax rebate for childcare costs in Ofsted-registered settings. So I guess you'd need to get your nanny Ofsted-registered...

I can't find any info which states nannies aren't included. You have to earn less than 150k annually. There's some key facts here:

www.gov.uk/government/news/tax-free-childcare-10-things-parents-should-know

Yep, she's ofsted registered. And I thought it was £2k/year per child for up to £10000. So basically 20% of Childcare bill up to £30k for three kids.

Light green it's not a rebate as such - you get an acount to pay for your child care and for every £1 you put in the government will put in 20p. This acount can then be used to pay for an ofsted registered childcare setting. Benefits those of us who don't get childcare vouchers through work and means anyone can put money in so help from in laws grandparents etc (that's how I understand it anyways)

That said, not sure it outweighs and extra 10 free hours a week for 3 and 4 year olds (Labour) or 15 free hours from 9m - 3 years (Lib Dems) in terms of net financial gain over the life of using childcare, in conjunction with vouchers, if this is what you're using to decide how to vote...

Don't think Labour have said they'll repeal it, and obv Lib Dems are part of the current gov.

Just nice to look at these things in the round.

(Sorry OP, misread -thought you had 2 not 3)

I thought it was a combined income of £300k or less? Previously £150k combined but increased to £300k. Anyone shed any light on upper limit of income it applies to?

The govt response to the consultation is here which should answer most questions.

Families where either or both parents are additional rate taxpayers will not be eligible.

Op it would seem that you are one of the winners with this as typically those with multiple children with high childcare costs benefit.

Things to watch out for/ take into consideration is your longer term childcare needs as once your out of childcare vouchers, you are out and can't get back in. Also beware the maximum earnings limit of £150k.

Also both parents need to be working to qualify.

Yes, on reading that document i think the limit is per person. So you could have a household income of just under 300k and still get it. Yet you're not allowed child benefit! It really is a case of taking with one hand and giving with the other. No logic at all.

So could I stay in Childcare voucher scheme but my husband take up new scheme or is it one or the other?
I'm still confused by who is entitled. Our combined income is about £180k including pension contributions.( If pensions deducted our combined income probably about £120k. We're Nhs workers so pay a lot in pension scheme).

Thatstoast - just seen your post. Clears up what I just asked. Thanks.

It's one or the other as far as vouchers and the new scheme are concerned.

So basically " benefits" for people earning 150k but cuts for everyone else. Got to love the Tories.

Thanks for all the info!
Going to sleep with a massive grin on my face!