Childcare vouchers – phasing out of changes
In conjunction with the introduction of the new ‘Tax Free Childcare’ (which is an allowance paid directly to the parent etc by the government) some of the existing tax reliefs for employer sponsored childcare (e.g. paid via childcare vouchers) are expected to be phased out.
Up to recently it was intended that qualifying employees would have to apply before April 2018 in order to stay within the existing system. However at the last minute it was announced that this cut-off date for new applications was is to be extended by 6 months, to October 2018.
Whilst this change does prevent new entrants joining, existing agreements are expected to remain valid