Meet the Other Phone. Protection built in.

Meet the Other Phone.
Protection built in.

Buy now

Please or to access all these features

Politics

Should the government make all childcare payments tax-free?

34 replies

WhatTheWhat · 29/05/2012 08:12

As in - should they change the rules so you can pay for childcare from your gross salary, rather than after tax. The childcare vouchers schemes work like that, but the amounts you can take are ridiculously low (less than £150 per month under the new rules).
Most childcare providers will then pay tax themselves on the payments they receive, so there's taxation in the cascade - it just helps working parents pay for their children's care more easily.
What do you think?

OP posts:
breadandbutterfly · 03/06/2012 17:24

cardymow - does this help? Says which areas will get childcare for 2 year olds from this year and which from 2013 -

www.bbc.co.uk/news/education-18248658

WhatTheWhat · 03/06/2012 19:13

So, proposals for Dave: make all 2yo eligible for 15 hours free nursery provision and make all childcare payments eligible for tax relief/salary sacrifice.
Done. Dusted.
Oh, and get some women in your government, old boy.

OP posts:
breadandbutterfly · 03/06/2012 20:23

Would massively improve Tory vote among women. Oops, shouldn't let on - don't want Tories in for another term.

CardyMow · 04/06/2012 00:04

Not my area at all. September 2013 for those areas, so by the time it gets to my area, he will already be over 3yo. Which means I still have to wait to go back to work until Easter 2014. Feck.

All I want to do is go back to work FFS.

breadandbutterfly · 04/06/2012 00:33

It's Sept 2012 for 10 lucky areas and Sept 2013 for everwhere else.

I know how you feel - the year I got married and had dd1 was the year they aboished married couples allowance, but didn't bring in child tax credits for another couple of years. So just when I needed the money, there was no support at all.

CardyMow · 04/06/2012 07:34

Ah, so I could just about shave 6 months off the time before I go back to work? As DS1 starts Secondary in Sept 2013, if DS3 gets the Nursery vouchers then, he will be 2y9mo, and I can go and find a job. Any job!

So I've got 15 months before I can go back. That sounds much better than 22 months! Still a while, though.

breadandbutterfly · 04/06/2012 10:11

Oh well, enjoy those 15 months. Spend it on lots of hugs and cuddles - they're still free, until someone works out a way to tax them, along with the air we breathe. Work is good, but time spent with little ones is priceless.

Frakiosaurus · 04/06/2012 12:12

I wouldn't support it for all childcare and I don't see how it works with the way the British tax system is set up.

I like the French system but it only works because we don't really do PAYE, everyone submits a tax return at the end of the year and you get a 50% rebate on the cost of a nanny or CM. 100% would mean the price of childcare spiralling out of control.

However vouchers could be extended and the same amount should be deductible for SE professionals to use on registered care.

MILFintraining · 07/06/2012 01:16

I think the current salary sacrifice limit of £243 a month is ridiculously low given how childcare costs rise year on year, but I'm not hopeful Cameron's goons plan to do anything.
It's ridiculous. I'm not getting into a debate about SAHMs/working parents, but from a purely economic perspective, both parents working and using childcare means that there are 3 people paying taxes, not one.

I've had my second child so we're really looking at the options now, as we're in the position that one of us will be working for nothing. I have quite a stressful job and DH's company are awful when it comes to flexibility when DS was ill, which rarely has happened and he always made the hours up or took them as annual leave so it's not just the cost, it's the whole quality of life issue now.
What also really, really pisses me off is that you're at the mercy of employers if they want to set up a voucher scheme or not. Luckily, my company does as it's a big multinational. DH's employer is much smaller, and at the time he was the only one interested. I did all the research about the scheme (this site was invaluable in that respect), printed off the brochures of some companies who offered it. It took a year for them to get their asses in gear and do the 30 minutes admin work required to get it going. The MD didn't give a fuck, the accountant said he was too busy, and when DH enquired politely as to the status he really was given the bums rush. A senior colleague intervened, and they finally looked at the stuff I'd given months later, but their delay cost us £1,000. It should be compulsory to set it up. I'm an accountant myself, and for crying out loud if I could save someone £1k a year and the company a few quid in NI, by doing 30 minutes work, of course I would.It kills me that because we were reliant on a lazy waste of space to do it, we lost that much money.

I think something has to be done. Ok, chances are the cost of making ALL childcare tax deductible is too high, but certainly raise the present limit.

New posts on this thread. Refresh page