Policy News Journal - 2013-14

TAX FREE CHILDCARE CONSULTATION PUBLISHED

5 August 2013

Further to our News report back in March, the government has now published a consultation document seeking views on their plans to introduce Tax-Free Childcare for working families.

At Budget 2013 the government announced that it will introduce a new Tax-Free Childcare scheme for working families which will provide 20 per cent of working families’ childcare costs, up to £1,200 for each child. This consultation invites interested parties to comment on the detailed design and operation of Tax-Free Childcare. It 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 design of different aspects of these policies, and poses questions in those areas where stakeholders are likely to have knowledge or insight. The responses will feed into the final design of Tax-Free Childcare. The CIPP’s policy team will be working with relevant stakeholders to discuss the detail of the new system and to explore how the transition from Employer-Supported Childcare to Tax- Free Childcare can work best for employers. The Policy team will also be producing a survey in the coming weeks to gather member views on how the rules of the new scheme might apply. The consultation will run until 14 October.

CIPP survey: Tax-free Childcare - consultation on design and operation

12 September 2013

The CIPP policy team has put together a survey to gauge your responses to some of the questions from the Tax-Free Childcare - consultation on design and operation.

This is a meaty consultation document which is aimed at a wide range of stakeholders, the majority of whom will have more interest in its outcome than an employer or payroll professional who is considering their payroll administration. It covers 63 pages and includes six chapters with a total of 38 questions. The employer and payroll professional is guided to Chapter 2 on voucher accounts (has 5 questions), Chapter 3 on eligibility for tax-free childcare (has 7 questions) and chapter 4 on information and validation (has 13 questions). All stakeholders are encouraged to read as much as possible of the consultation document and whilst the Policy team have only selected questions for the survey that we believe will impact, albeit remotely, on employers, we would urge any member who currently operates an Employer Supported Childcare scheme or who intends to contribute to this survey , to read the entire document Tax-Free Childcare: consultation on design and operation . Additionally if you would like to respond to any of the consultation questions that we have not included, space has been added to the end of our survey to allow you to include further comments. HMRC have also put together a summary of the proposed design of the new scheme with a short series of questions specifically aimed at parents, if you are aware of any employees who you feel would value sharing their opinions, we would encourage you to pass the details on to them Tax-Free Consultation Parent Survey .

And finally, in addition to the consultation questions, we have also posed some follow up questions, aimed at gauging your early thoughts about these proposals. We would

CIPP Policy News Journal

16/04/2014, Page 153 of 519

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