Commentary

E1.718 Tax-free childcare—compliance issues

Personal and employment tax

E1.718 Tax-free childcare—compliance issues

E1.718 Tax-free childcare—compliance issues

HMRC have been equipped with wide powers to police and protect the system of tax-free childcare. The majority of the provisions under the Childcare Payments Act 2014 have effect from a date to be appointed and this is highlighted in the footnotes where relevant.

Information powers

HMRC may require from a person information or documents needed 'in connection with their functions under this Act'1. This is a loose formulation covering a potentially very wide range of information. It is limited by the provision that the information or document must be in the person's possession or power. Also, an information notice must give a reason for the request. The notice will specify a period within which the information must be supplied, and this may not be less than 30 days2.

The following persons maybe served with an information notice3:

  1.  

    (a)     an account holder or someone who has applied to open a childcare account

  2.  

    (b)     a partner of someone in (a)

  3.  

    (c)     an employer or former employer of someone in (a)

  4.  

    (d)     an agent of someone in (a) or (b)

  5.  

    (e)     a person who has provided childcare or received payment from a childcare account

  6.  

    (f)     an employer who has provided a childcare scheme

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