We’ve kicked off a campaign to make sure you’re all aware of the proposed changes to tax relief on childcare vouchers that will take effect on April 6 2011. From this date, the level of tax relief available to higher and additional rate tax payers will be reduced for any new entrants.
The proposed tax change promotes equality of benefits, so that all parents are receiving roughly the same level of savings. However, this means that those on higher incomes will see their overall savings reduced, unless they sign up to a scheme before April 2011. If you’re already in a scheme when the proposed changes take effect, you won’t see a difference in the way your savings are calculated and you will continue to receive the maximum benefits available.
So now’s the ideal time to join a childcare vouchers scheme and following the removal of child benefit for higher rate tax payers in the spending review, childcare vouchers offer parents thousands of pounds of savings and some respite from the increased pressure placed on them in recent weeks.
For more information on the tax changes, and what this means for parents, employers and carers, visit our dedicated website www.computersharevoucherservices.com/actnow
HMRC have also issued formal guidance on the tax changes, these can be found on our News / Publications page.