Delay to roll out of Tax free childcare
The government have announced a delay to the roll out of tax free childcare which was expected to be fully implemented by the end of the year. From 24 November 2017 the service is available to parents whose youngest child is under 6 or who has their 6th birthday on that day. Parents can apply online through the childcare service which can be accessed via the Childcare Choices website.
In April 2017, HMRC started rolling out the childcare service via a single website through which parents can apply for both 30 hours free childcare and Tax-Free Childcare. The roll out started with parents of the youngest children first. HMRC acknowledge that over the summer some parents didn’t receive the intended level of service when using the website and that they have subsequently made significant improvements. For those parents who have had difficulties in accessing the service, compensation may be available: see childcare service compensation.
Over the coming months, HMRC will gradually open the childcare service to parents of older children, whilst continuing to make further improvements to the system. HMRC hope this strategy of managing the volume of applications will result in prompt eligibility responses when parents apply, with ‘almost all parents receiving a response within five working days, and most getting their decision instantly’.
All eligible parents will be able to apply by the end of March 2018. Parents will be able to apply for all their children at the same time, when their youngest child becomes eligible.
Tax-Free Childcare is the new government scheme to help working parents, both employed and self employed, with the cost of childcare. For every £8 a parent pays in, the government will pay in an extra £2. Parents can receive up to £2,000 per child, per year, towards their childcare costs making a total amount of £10,000. Higher limits of £4,000 and £20,000 apply for disabled children.
To qualify for Tax-Free Childcare parents and partners in the household must generally meet a minimum income level of on average £120 a week and each earn less than £100,000 a year.
The scheme will eventually be available for children up to the age of 12, or 17 for children with disabilities. Those eligible will be able to apply for all their children at the same time.
Employer Supported Childcare, usually by way of childcare vouchers, will remain open to new entrants until April 2018 to support the transition between the schemes and it will continue to be available for current members if they wish to remain in it or they can switch to the new scheme. It is not possible to benefit from both Employer Supported Childcare and Tax Free Childcare at the same time.
Internet link: Tax free childcare for under 6
Being immersed in the nitty gritty of tax? Talk to Simon Boxall at Ward Williams who can help with some thorny subjects such as should I let my property furnished or unfurnished? Or when should I do maintenance work?Jeremy Wasden, Director at Belvoir Lettings Uxbridge
Because services have always been reliable and questions are answered and advice given promptly.Ian Macdonald, Macdonald Associates Consultancy
A high level of dedicated personal service and ability to find and recommend solutions and complex questions.Bruce Todd, InCompass International Consultancy Services Ltd.
I have always found Ward Williams team to be responsive and helpful to any questions for advice.Ann Tomsett
We have had a long successful working relationship with Ward Williams over many years.David Warwick, MASDAR (UK) Limited.
Knowledgeable and informative advice. Trustworthy and competent. Very friendly likeable staff. Completely Satisfied.Mrs Ingrid Klinkhamer
I am extremely happy with the service provided and would try to recommend Ward Williams at every opportunity.Michelle McIntyre, Airboe Components Limited.
I have enjoyed a long relationship with Ward Williams and have found you to be very competent at what you do!Bryan Lewis, Media On Demand
To date I have been very satisfied with the service providedDavid Hawkins, Cane Bay PTY Ltd.
Excellent service both personally and as a business.Guy Hewitt, Angelo European Trading (UK) Ltd.
Ward Williams supported my business since shortly after its inception. Phil, Ming and Jamie respond constructively and promptly to any queries that I may have and my dealings with the other staff are always friendly and courteous.Madeline McGill, Senior Executive Selection Coaching & Development Ltd.
Great service from great people. Moving our business to Ward Williams was one of our better decisions.John Yeomans, Champagne Food Ltd.
Friendly, efficient and professional service.Irene Reid, Domains Lettings Ltd.