providing support to their employees by offering a net pay deduction process and paying over the deductions to the childcare accounts.
We believe that for employers who wish to support their employees in this way, the childcare account should provide security, simplicity of operation and consistency.
The proposal that a single government backed provider in the form of National Savings & Investment (NS&I) using its existing infrastructure does offer this potential.
Additionally, when asked directly, 80 percent, who currently plan to provide assistance or have yet to decide whether they will provide assistance to their employees, would prefer to deal with a single account provider.
Our response can be read in full here .
Tax-Free Childcare consultation – the ICAEW response
9 July 2014
The influential Institute of Chartered Accountants in England and Wales have published their response to the current consultation, indicating their preferred method of delivery for the new scheme.
The ICAEW response warns of the dangers of placing new pressures on employers in the way the new scheme is introduced and operated.
Tax Free Childcare consultation response
30 July 2014
Following the recent consultation, the government have now decided on the provision of childcare accounts within the new scheme.
As the government confirmed in 2013, following an initial consultation exercise, the essential elements of the new scheme are that:
Tax-Free Childcare will be introduced in autumn 2015, with the scheme open to up to 1.9 million working families within the first year of the scheme’s operation. Eligible families will receive 20 per cent support towards their childcare costs, up to an annual limit of £2,000 government support per child.
The additional consultation, which ran from May to June 2014, focussed on the provision of childcare accounts within the new scheme.
The government has now announced that it has carefully considered the responses to both consultations and the evidence on all of the options, and has confirmed that National Savings and Investment (NS&I) will be the scheme’s account provider, working in partnership with Her Majesty’s Revenue and Customs (HMRC). The full consultation response document is available here .
Some employers continuing with childcare vouchers when the new scheme begins
13 August 2014
New research suggests that large numbers of employers may still provide childcare vouchers when the government’s new tax free childcare scheme begins in autumn 2015.
CIPP Policy News Journal
08/04/2015, Page 171 of 521
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