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Breaking News March 14th 2018 Childcare scheme gets six-month reprieve

14 Mar 2018

Education Secretary Damian Hinds made the concession during a Commons debate yesterday March 13th.

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Childcare vouchers to be hit by phased withdrawal of tax and NI breaks

Or How Gordon Brown lost even more votes in his keynote speech.

There has been a lot of press over comments made by Gordon Brown in his keynote speech at the Labour party conference in Brighton concerning taking away tax and NI breaks for working parents at a combined cost of around £2,000 per annum. With Childcare cost's very expensive together with rising cost of living; the government's introduction of the very popular Childcare voucher scheme has been a very attractive option for working parents in saving on their childcare costs.

Looking at the statements and the various comments and articles on the internet and from talking with tax experts, it may not be as bad as some are making it sound.

Firstly this is a phase out Employees taking up childcare vouchers from April 2011 for the first time will no longer benefit from tax and national insurance breaks, while employees who are existing recipients of childcare vouchers will have their tax and NI breaks withdrawn from April 2015. Therefore there is still time to capitalise until a year from April 2010.

A statement from HM Revenue and Customs said: "The government is not abolishing childcare vouchers, only phasing out tax relief for them. Vouchers are now well entrenched, employers will still be able to offer them, and existing users will be unaffected for five years ‘'. Exact details of the changes will be announced in the pre-budget speech in November 2009.

The government may not even be in power in six months time, If we do have a new government which I would not bet against then the timings of the faze out might not even come in to play.

My opinion is to take advantage of the childcare scheme. Being in now gives you at least 6 years of TAX free savings and if the general opinion and experts are correct we might be worrying for nothing.

There is an E-Petition on the 10 Downing street website against the proposed plan to make your comment and petition go to

Ian Goldstein
Childcare Voucher Solutions

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