The government has confirmed that the implementation of Tax-Free Childcare has been delayed until early 2017. Whilst communicating the delay, the government has stated they are still dedicated to implementing Tax-Free Childcare.
The delay has been put down to the legal challenge of the appointment of NS&I to deliver Tax-Free Childcare.
The current Childcare Voucher Scheme will remain open to new entrants until Tax-Free Childcare is launched. Parents who wish to remain in a Childcare Vouchers Scheme once Tax-Free Childcare is launched will be able to do so, as long as their current employer continues to offer a Childcare Voucher Scheme.
The government has committed to release exact rollout dates for Tax-Free Childcare in due course, but has not yet committed to exact timeframes.
More information from HM Treasury and HM Revenue & Customs is available on the gov.uk website.
Although Wider Plan was not involved in the Supreme Court judgement, we recognise that the delay of Tax-Free Childcare is a great advantage to employers.
The delay of Tax-Free Childcare is great news for employers, giving them extra time to enjoy their current National Insurance savings, and to implement further salary sacrifice schemes to secure these savings beyond 2017.Alison Chalmers, Wider Plan
What this means to employers:
- Employers can continue to offer Childcare Vouchers as a salary sacrifice benefit to all employees.
- Employers can continue to enjoy National Insurance savings for a further 18 months.
- Now is a great time to refresh the marketing of your scheme and let your employees know how they can maximise their savings with KiddiVouchers.
Wider Plan, the provider of KiddiVouchers, continues to support employers during implementation of Tax-Free Childcare. If you would like to talk to us further about the changes or about promoting your scheme, please call Call Wider Plan: 0800 612 9015 or email email@example.com