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Tax free childcare ... sign up required September / October


FSFRebecca
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I don't think it will affect your accounts at all BroadOaks - it's the parent that's getting the tax break - they'll still pay you the normal amount of fees - they'll just get given some money towards it from the Gov rather than getting childcare vouchers.

Edited by GFCCCC
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"Childcare Providers

Use the information below to get ready to sign up to Tax-Free Childcare.

 

You’ll need to sign up to receive payments from parents

Throughout September and October 2016, letters are being sent 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."

Has anyone received an invitation to this delightful party yet??

 

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  • 3 weeks later...

I'm starting to wonder if the idea is to not send the letters, resulting in no providers being registered for the scheme! Perhaps I'm being cynical!

 

Perhaps you're hitting the nail on the head!! Needless to say, we havent heard anything either. As usual with any government scheme esp where EY's are concerned, they make all these big announcements "arent we wonderful, look what we are doing to help parents" and then zilch!

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I was at a meeting about this last week and the letters are not out yet except for in a few small pilot areas - to make sure that the sign up process works well. The general roll out of the letters will be after half term. We were reminded that it will be an official letter not an email and this is important because you will be asked to put your bank details in so that a link to your parents can be made when they start putting their money into the 'online' facility. As I understood it it works like this:

  • Provider signs up and links bank account to HMRC tax free childcare scheme
  • Parents sign up and link to their provider
  • Parents can put in up to £8000 per year, per child under 12 years
  • Govt will put in 20% addition to whatever parent puts in (so if parents deposit £100, govt will put in £20)
  • Money will be released by parent to linked provider.
  • If parent has too much money in the 'pot' when they finish with childcare they can take out their remaining money, but not the additional 20% that govt has put in
  • Eligibility criteria is the same as for 30 hours funding
  • Parents are not eligible if they have tax credits or universal credit - when they apply for the tax free childcare there will be an online calculator that will help them see which system is more beneficial to them financially.
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Thank you Rebecca, this is very useful information.

 

Just one thing, I'm not sure this is correct:

 

"Parents can put in up to £2000 per year, per child under 12 years

 

Shouldn't it be.

 

"Parents can put in up to £8000 per year, per child under 12 years and the government tops this up with up to £2000, to bring the total in your account to £10k?

 

I'm not sure how the £4000 for SEND children will work - i.e. will it mean parents only put in £6000 and the government top it up with £4K or will it mean they need to put in £8k to get the £4K benefit?

 

Questions, questions!

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Thank you Rebecca, this is very useful information.

 

Just one thing, I'm not sure this is correct:

 

"Parents can put in up to £2000 per year, per child under 12 years

 

Shouldn't it be.

 

"Parents can put in up to £8000 per year, per child under 12 years and the government tops this up with up to £2000, to bring the total in your account to £10k?

 

I'm not sure how the £4000 for SEND children will work - i.e. will it mean parents only put in £6000 and the government top it up with £4K or will it mean they need to put in £8k to get the £4K benefit?

 

Questions, questions!

I'll just check my notes!

 

Checked - you're right - my handwriting left a little to be desired - so I've made the change!

 

"For every 80p you or someone else pays in, the government will top up an extra 20p
This is equivalent of the tax most people pay - 20% - which gives the scheme its name, ‘tax-free’. The government will top up the account with 20% of childcare costs up to a total of £10,000 - the equivalent of up to £2,000 support per child per year (or £4,000 for disabled children)"
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Thanks again!

 

That's pretty much word for word on what it says here:

 

https://www.gov.uk/government/news/tax-free-childcare-10-things-parents-should-know

 

According to those FAQ's, it's still a little unclear how it will work for SEND children. However, judging by the notes you posted last week following the 30 hours briefing you attended, few parents of SEND children are likely to qualify anyway.

Edited by MagicStar
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  • 2 weeks later...

I tried to sign up yesterday and ended up phonng for help. As a charity we havent got a UTR nor a NI number but the guy said charities will be able to set up at a later date.

 

I'm guessing they forgot we exist! :rolleyes:

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That's useful then Rea, also a charity but not tried yet, though I've had the letter now along with the rateable value letter, telling me to check by visiting the website, I tried that and our address doesn't exist . ... Funny that they know where to send the letter and bills :-/

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That's useful then Rea, also a charity but not tried yet, though I've had the letter now along with the rateable value letter, telling me to check by visiting the website, I tried that and our address doesn't exist . ... Funny that they know where to send the letter and bills :-/

When I put our postcode into the rateable value website we didn't exist either. I had several attempts with postcode and address. It did eventually work. Rateable value has increased. You can the click to see a draft charge. Nice surprise - ours was zero! I wait with baited breath!!!!

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