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Easement for employer-supported childcare schemes

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HMRC will allow tax and NICs advantages to continue until October for employees who were members of childcare voucher and directly contracted childcare schemes before 5 April 2018, where employers closed their schemes on 5 April in accordance with HMRC’s original instructions.

The childcare payments scheme (tax-free childcare) was due to replace the existing employer-supported childcare schemes after 5 April 2018. The government announced in March that these schemes would be allowed to remain open to new entrants for an additional six months, until 4 October 2018.

In recognition of the fact that employers that closed their schemes on 5 April may face practical difficulties in re-opening them for the six-month extension, HMRC announced in Employer Bulletin 72 that, in these circumstances, it will use its collection and management powers to allow tax and NICs reliefs to continue until 4 October.

Issue: 1404
Categories: News