The Chartered Institute of Payroll Professionals
Policy Bi-Monthly Newsletter – September 2016
Expenses, Benefits & Reward Childcare providers are critical to the successful roll out of Tax-Free Childcare – spread the word 3 August 2016 Tax-Free Childcare, which will launch for eligible parents from early 2017, is a new government scheme that will help working families with their childcare costs. Childcare providers are critical to the successful launch of Tax-Free Childcare. Many parents will want to pay for their childcare through this scheme, and to receive these payments, childcare providers must have signed up in advance. As from now HMRC will begin to increase their contact with all childcare providers to introduce Tax-Free Childcare and throughout September and October, they will then write to all childcare providers who are registered with a regulator, and invite them to sign-up to the scheme.
TFC – top things that Childcare providers should know
Childcare providers will need to sign up to receive payments from parents - In September and October 2016, HMRC will send letters to regulated and approved childcare providers across the UK, asking you to sign up online for Tax-Free Childcare. You’ll be able to sign up online as soon as you receive your invitation. Only childcare providers registered with a regulator (such as Ofsted) can receive Tax-Free Childcare payments. Registration can take up to 12 weeks so, if you aren’t registered, register now so that your customers can pay you using Tax-Free Childcare. For registration timelines, please check the appropriate regulators website.
Check that your regulator has your current address – you will only receive an invitation to sign up for Tax-Free Childcare if your regulator has your current address.
Please also make sure your regulator has your current email address as this will help us if we need to contact you.
Parents will be able to see if you’ve signed up for Tax-Free Childcare - once you sign up, you’ll appear on the new digital tool from HMRC which lets parents search for childcare providers signed up for Tax-Free Childcare.
Be ready for Tax-Free Childcare - If you’re running a business, you’ll need your 10-digit Unique Tax Reference (UTR) number to sign up for Tax-Free Childcare. This is the number that HMRC gave you when you first told them that you were working for yourself. Your UTR can be found 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’ll need your National Insurance number to sign up for Tax-Free Childcare. You can find this on your payslip, P60, or letters from HMRC about tax, pensions and benefits.
When you sign-up, you’ll need to tell HMRC your bank details. Parents will then be able to send you payments directly from their Tax-Free Childcare accounts to your bank account (via BACS). Each child will have a Tax-Free Childcare reference number. Parents can let you know their reference number to help you identify their payments.
More information about Tax-Free Childcare will be available later this year.
cipp.org.uk
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