Childcare Voucher Changes: The Self Employed, no longer left out in the rain
You self-employed warriors are no longer going to be completely left out when it comes to childcare help from the government, no longer left to wistfully dream of childcare vouchers. With the introduction of Tax Free Childcare, or TFC for short, self-employed people are now eligible (subject to a few criteria, of course!) for help with their childcare costs.
This change was initially meant to be rolled out in 2015, but a few legal challenges saw that it was delayed, and delayed, and delayed. But it’s here now – let’s take a look at what it means for you
How it works
It’s quite simple really – for every £8 you pay in to the scheme, the government will pay £2. Up to a maximum of £2000 (from the government) per child per year. This amount increases to £4000 if your child happens to be disabled.
The scheme doesn’t allow you to use all the £2000 in one go, you have a quarterly (3 monthly) maximum contribution from the government of £500.
It also goes without saying that the childcare provider must meet certain criteria laid out by the government, sadly they can’t just be their favourite gran.
Since, as a self-employed person, you were never entitled to childcare vouchers (these were only ever offered by employers). This is a welcome change and can really help ease the burden of childcare. Even better news is that this can be added on top of the 30 free hours of childcare (if you’re eligible for them).
Our next blog post will delve into the eligibility for TFC. We’re always here to help with tax matters and to make sure you’re as tax efficient as possible – you’ve probably got a million questions and we’re always happy to help, drop us a line.