Commentary

E1.715 Tax-free childcare—introduction

Personal and employment tax

E1.715 Tax-free childcare—introduction

Tax-free childcare

E1.715 Tax-free childcare—introduction

The tax-free childcare scheme began with a phased introduction on 21 April 2017, becoming fully effective from 14 February 20181. Prior to this date there is relief for employer-contracted childcare (see E4.760A) and childcare voucher (see E4.605A) schemes. These schemes are effectively closed to new entrants as the tax-free childcare scheme comes into operation. Exemption in relation to employer-provided childcare (see E4.759A) continues.

'Tax-free childcare' is a method of giving relief from income tax at the basic rate to payments into a childcare account up to a maximum of £8,000 per year (£16,000 for a

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