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HMRC have published a consultation on tax-free childcare for working families and additional assistance with childcare for parents through universal credit. Under the scheme to be administered by the Revenue, the government will provide 20% of working families’ childcare costs, subject to an annual limit of £1,200 for each child.
Parents will register with a voucher provider and open an online account. The government will then top up payments into this account at a rate of 20p for every 80p that families pay in, subject to the above limit.
HMRC have published a consultation on tax-free childcare for working families and additional assistance with childcare for parents through universal credit. Under the scheme to be administered by the Revenue, the government will provide 20% of working families’ childcare costs, subject to an annual limit of £1,200 for each child.
Parents will register with a voucher provider and open an online account. The government will then top up payments into this account at a rate of 20p for every 80p that families pay in, subject to the above limit.
The consultation sets out the eligibility criteria, the approach to managing voucher accounts for each child, the role of the market, and the key information and validation processes. It discusses the considerations that have to be made in designing different aspects of the scheme, and poses questions in those areas where stakeholders are likely to have knowledge or insight.
Comments are invited and should be sent by email no later than 14 October.
