Any working parent will tell of the challenging cost of childcare. Some
parents are spending almost twice as much on part-time childcare per annum as they
are on food and drink. For many, these costs are prohibitive and parents are
forced to reduce their working hours to manage these costs.
Fortunately, the Government has recognised the huge impact of this issue
and announced changes in the recent budget, which could save families thousands
of pounds in childcare fees each year.
So, from April 2017 tax changes are coming in – what will these changes mean
to your childcare costs?
Child Tax Credits
The “family element” of child tax credits is to be abolished for parents
of children born after 6th April 2017.
Furthermore, the “child element” will only apply to the first two
children (however, in respect of children born prior to this date, credits for
three or more children will still be payable).
Tax-Free Childcare
Tax-free childcare is to be introduced to replace employer-supported
childcare (including childcare vouchers).
It will be available to approximately 2 million working families with
children under 12., for people who have an annual income of less than £150,000 (and
are not receiving help with childcare via tax credits).
The government will contribute up to 20% of the first £10,000 of
childcare costs per annum (to a maximum of £2,000 per child, per year). To find
out how to apply, read here.
Obviously, this funding can go towards breakfast clubs, after school
clubs and holiday camps, such as those we provide through Kidz Zone.
#schoolsports #holidaycamps #breakfastclubs #afterschoolclubs
#fitnessclasses #childcare
