Childcare vouchers - new scheme

[Kanga59]

I'm pretty clued up on the old scheme, where you sacrifice either £243 or £100 max per month.

But struggling with the new scheme, where the gvt add 20p to your 80p in a special NSI account.

Can one parent remain in the old scheme and the other do the new scheme? I can't find any definitive answer online (just that both parents can switch over but can't participate in both). But what about parents who are not separated, doing one scheme of each? Has anyone come across this?

Sorry i cant help, i only know the old
Scheme. Do you know when the new scheme comes into place

I work for an independent school and have been signing up to the new scheme as a provider. It's a fucking car crash - they're making it up as they go as far as I can work out.

You can't be in both because they have a distinctly different mechanism - tax free childcare is an account per child where the vouchers are an allowance per parent. They can't be mixed and matched.

Both parents must be working but if one parent earns over £100,000 pa you are ineligible for tax-free childcare where all workers are eligible for childcare vouchers.

If you are a member of a voucher scheme you can remain in it but they will close to new entrants soon.

It's a hot mess and I've spent way more time on it than anyone should. Fucking HMRC.

What a nightmare. Can parents pay their private school fees (up to child's age 12) with the new scheme moany?

Hubs and I are both in our employer "old" scheme atm which we can use for under 5's school fees, plus after school care for our older child.

Can one parent remain in the old scheme and the other do the new scheme?

I believe the answer will be no.

Legislation
12 - The person and his or her partner must not be in a relevant childcare scheme

But what about parents who are not separated, doing one scheme of each? Has anyone come across this?
I can find a definition of 'partner' in this legislation.

If someone is not separated, what are they? If they are still living at the property, then for the purposes of Tax-Free Childcare they are a partner ((b)they are not married to, or civil partners of, each other but are living together as a married couple or as civil partners.)
What I think you are asking is if someone is married but is not living in the same household.

<a class="break-all" href="http://www.legislation.gov.uk/uksi/2015/448/made" rel="nofollow" target="_blank">Legislation</a>
4 (2) A person is not regarded as responsible for a child during any period when the child is—
(a)continuously absent from the person’s household for a period which exceeds, or is expected to exceed, 6 months;

So if someone was married but they lived elsewhere and were expected to be living elsewhere for the following 6 months at the point of declaration, then that person living elsewhere is not considered responsible for the child. I think!

If a child's non-resident parent wanted to contribute, I believe that they can pay into the child's tax-free childcare account. So as that money is going into the account and as the parent who is resident is claiming under the scheme, then that would get the top-up and would be used towards approved/registered childcare (including payments to HMRC if using a registered/approved nanny).

Can parents pay their private school fees (up to child's age 12) with the new scheme moany?

I would say no, as the Act says

2(1)In this Act “childcare” means any form of care or supervised activity for a child that is not provided in the course of the child's compulsory education.

If fees were subdivided into an element for after-school care, then I think it could be used for that, subject to the after-school facility being suitably registered. That would be something to ask the school to ask the Independent Schools Association about.

Ace, thank you nannynick

I am starting to think that only 2 higher rate tax payers not earning £100k+ Will be better off under the new scheme.

Moanyoldcow - in signing up the independent school, is it so parents can use it towards the cost of activities outside of the compulsory education hours? Have you also been signing up as a provider of pre-school education?

I am starting to think that only 2 higher rate tax payers not earning £100k+ Will be better off under the new scheme.

There will be winners and losers. Parents will need to establish which of the various schemes is better for them given their circumstances.

Has the www.gov.uk/childcare-calculator been of any help in establishing if your family is eligible?

There's some useful reading, examples and calculators about this on the MoneySavingExpert website.

There are various factors so worth looking into which is best for you. I have 2 DCS in nursery so new scheme is better for us as it's an amount per child.
The 'early 2017' start to the scheme hasn't come about though so still patiently waiting!

The roll-out of Tax-Free Childcare is due to start soon. They have a email alert system, so you can get a notification based on your youngest child's age. www.tax.service.gov.uk/childcare-schemes-interest/welcome

Sorry for late reply! Yes, it's to pay for eligible activities rather than fees. We don't provide pre-school education, only from Reception.

Thanks Moany.

We're in the trial for this and our account is now up and running. Both our childcare providers haven't registered for this scheme yet though so it's no help at the moment!

TeaandBisquits, is either of your providers a nanny? Doubt it but can't resist asking as I would love to find out more from parents who employ a nanny and a nanny themselves as to how they are finding the payment side working.

Unfortunately not Nanny. Our are a day nursery and a breakfast/ after school/ holiday club.