Tax free Childcare scheme- start date delayed

Tax free Childcare scheme- start date delayed

The Government has announced that the start date for its new Tax-Free Childcare scheme, which was due to come into effect in October 2015, is to be delayed by more than a year until early 2017.

There had been a legal challenge in the Supreme Court by childcare voucher companies regarding who should operate the new scheme and, although the Court ruled that the Government has acted legally, we understand that this has resulted in delaying its implementation date.

The Government has advised that the Employer-Supported Childcare scheme (childcare voucher salary sacrifice schemes), which were to have been closed to new entrants from October 2015,  will remain in place for the time being and employees will be able to join these schemes right up until the new scheme comes into operation.

If you have any queries regarding the implications of the delay for your authority, please contact our Employment Tax Director, John Harling, on 07768 446381 or by e-mail john.harling@lavat.co.uk