Date posted: 5th Oct 2021
As employees return to work after the end of CJRS furlough support, they need to start thinking about childcare if they have children.
If they haven’t already done so employees should set up a “Tax-Free” Childcare Account to help pay towards the cost of childminders, breakfast and after school clubs, nursery fees and approved play schemes.
For every £8 an eligible family pay into the special account the government adds £2, up to £2,000 a year, or up to £4,000 a year if a child is disabled. The scheme is available to parents or carers who have children aged up to 11, or 17 if their child is disabled.
If you earn over £100,000 then you will not be eligible for support, but this depends upon whether you make tax deductible payments such as pension contributions or gift aid donations.
As ever, our tax team are here to help, contact us here .