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.

No different to the child benefit single income V joint income soon tis all bonkers.

Soontobesix - I see it as a reward for working families. Everyone gets 20% off their childcare bill not just the 'rich'.

Limpet I wouldn't have an issue if we weren't living in a time of austerity and cuts. We can't afford to "reward" people on such a high income.
The policy has good points but the income cut off should be halved at least.

I'm with uncommon sense. WTAF? You sleep with a smile on your face knowing tax payers could be subsidising choices you can't afford? Shame on you.

If you disagree with the policy then blame the government. There's no need to be rude to the OP because she happens to meet the criteria.

SoonToBeSix

If you work and make shed loads of money the tories love you and will do anything your little heart desires.

If you don't/can't or one of you doesn't, you will be penalised and villified.

*OP.

You are taking advantage of the system that we have, or will have.
I don't blame you, lots of us benefit in some way, myself included.

It's not a good thing thing to rub it in other peoples noses though.

I don't know why there are two things

Toast how was I rude to the op? I don't even know what she earns my issues is with the government as I said in my first post.

I was referring to honeypot. I agree with your point.

Ah ok sorry toast.

I work 50 hours per week. My husband works 50 hours per week. We both then try and work an extra 20 hours per month to afford our Childcare.
We came out of university with £80k debt between us and have worked hard all our lives. Worked hard at school (not privately educated) and then worked hard at university and then work hard at work. We have both worked while studying whether it be jobs at McDonald's or manual labour.
If you can honestly say you work harder than us, have sacrificed more than us, then feel free to have a go. If not, zip it and don't have a go.

I have no problem that I have to work longer with the new pension rules (and get less) I have not complained that I have not had a payrise in how many years. I even don't complain that the extra hours I work to fund my childcare is taxed at 40% so even all that extra work I do, I only see about half of the cash. So if this new scheme means I see my kids more so don't have to work extra hours- great!

Don't get personal about a national issue.

Oh and I had a lovely nights sleep, thank you.

Higher earners on 40% tax only get half their tax back under this scheme whereas lower earners get it all and often more on top so it doesn't seem unfair to allow higher earners access to it.

Don't forget that the new scheme is only for under 5's.

I'm having to stick to the old scheme aa the new one doesn't cover after school care.

I do wonder if the Conservatives get back in if the scheme will be extended in age and will include private schools too, I'm undecided how I feel about that.

Mindifidont : think scheme is for children under 12, isn't it?

Yes, from thatstoast's link "3. The scheme will be available for children up to the age of 12. It will also be available for children with disabilities up to the age of 17, as their childcare costs can stay high throughout their teenage years."

"The new scheme will initially only be available in respect of children under 5, although there are plans to make it available for all children under 12 within one year."

www.kiddivouchers.com/taxfreechildcarenews.php

Might be an old link.

gah so if you have a 3 year old and a 6 year old what do you do? With free hours and child care vouchers we have 'uncovered' nursery top up at present of 95ish a month. DH is a higher rate tax payer though so his 112 has more deducted. So I think we're better off as it is .

I don't understand the about tax relief on a nanny (who you have to pay ni for anyway). Other employers pay for their employees before tax is worked out. Regardless of the millions they may (or may not) be making.

The govt policy document I posted last night answers the age question and seems to be the most up to date source of information.

the Government is rolling out Tax-Free Childcare more quickly than previously announced. All eligible parents with children under 12 will be able to receive support through Tax-Free Childcare within the first year of the scheme’s operation

One thing to note is that it's not clear whether you can pay a nanny's tax out of TFC. The consultation document says that employers of childcare workers (ie nanny employers) should be able to recover their "gross costs" - which would suggest that tax is covered but obviously you don't pay the tax to the nanny you pay it directly to HMRC.

The current scheme relies on you paying the voucher amount a named OFSTED registered person so if they replicable that then you wouldn't be able to pay the tax. They will need to add a new element to allow the payment of HMRC from the TFC.

I spoke to my nannytax company and they didn't have a clue so it's something to bear in mind when doing the calculations in case they decide not to make the tax part payable.

If there are 2 parents and 2 children then surely one can keep childcare vouchers and the other use the new scheme?
Tax affairs for couples aren't linked so I fail to see how that's not an option.

All will be revealed with the Budget I hope but no idea if plans will carry on after the election if another party or coalition gain power.

I also haven't seen much information about how the scheme will be administered other than accounts will be run by NS&I and eligibility will be assessed quarterly. This makes me speculate that payments will also be made quarterly and possibly in arrears.

I'm not getting personal, so declining the offer to zip it. You work hard and you make your choice to have more kids than you can seemingly afford to pay childcare for. It's sad and yes a national issue. Only some of us make choices that fit with our financial means and don't expect handouts.

Did I miss something salient or is that it?

You can only use one scheme at a time; I imagine the voucher companies will have to make a return to the govt or something and if you are found to be using both schemes, you'd be committing benefit fraud with all the consequences that go with that.

Honeypot. Yes you seem to miss the point. 'You sleep with a smile on your face - shameful'. Very personal indeed.
I choose to have more children than I can afford?!?- Am I claiming tax credits?!? Am I claiming any help from the government in anyway other than what they offer to help hard working families.
Should families with twins abort one if they can only afford one child?!? your comments are ignorant and ludicrous.