The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
find your UTR on any HMRC communications, for example, your tax return or your payment reminder. If you can’t find your UTR number, HMRC can send this number to your address. For more information call 0300 200 3410.
If you’re a nanny you will also need your National Insurance number to sign-up and you will need to tell HMRC your bank details.
How do parents pay for Tax-Free Childcare? Parents will be able to send payments directly from their Tax-Free Childcare account to your bank account. Each child will have a Tax-Free Childcare reference number. Parents can share their reference numbers to help you identify payments. When can parents start using Tax-Free Childcare? Tax-Free Childcare will be rolled out gradually from early 2017, parents with the youngest children able to apply first. Parents will be able to apply for all their children at the same time when their youngest child becomes eligible. All eligible parents will be able to join Tax-Free Childcare by the end of 2017. What happens if the details that my regulator have are not up to date? We will be sending your invitation to the postal address held by your regulator so you may not receive it if your details are out of date. Please ensure your regulator has your correct details, including your current email address.
For more information on this new offer, and HM Government’s existing childcare schemes, visit GOV.UK .
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Tax-Free Childcare: employees need to make an informed choice 21 September 2016
Research from Sodexo shows that many families may be worse off under the incoming Tax-Free Childcare scheme; highlighting just how important it is that employers communicate the differences to their employees to ensure they make an informed choice. Almost two thirds of UK families (64%) will be worse off under the Government’s incoming Tax-Free Childcare scheme, compared to the existing employer-led Childcare Vouchers, according to research by Sodexo Benefits and Rewards Services . The research also uncovered that 82% of households paying basic rate tax with one child would lose out if they adopt the new scheme. Tax-Free Childcare is due to roll out from early 2017, slowly phasing out Childcare Vouchers by April 2018. Those signed up for Childcare Vouchers by the cut-off date will still be able to use them once Tax-Free Childcare is live. Childcare Vouchers have helped approximately 700,000 working families save up to £933 of tax and NI on their childcare costs per year. This can reach up to £1,866 per family if both parents receive Childcare Vouchers. This value covers an average of 54% of a family’s childcare costs for children up to the age of 15. Tax-Free Childcare has been designed to cover up to 20% of a family’s childcare costs (up to £2,000 per child per year, until the age of 12). However, the latest figures from Sodexo suggest the new scheme will actually leave most families out of pocket and struggling to afford childcare. Research was collected from 9,259 UK families who used Sodexo Benefits and Rewards Services’ online Childcare calculator . The online tool allows families to apply their individual circumstances to an algorithm that assesses which scheme would provide the greatest amount of saving for that family.
The research showed the percentage of households who will be worse off with Tax-Free Childcare:
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