Budget 2013 Child Care Tax Relief

Budget 2013 Child Care Tax Relief

The Chancellor has confirmed that parents and mothers wanting to return to work but finding it difficult will be helped by a tax free child care voucher scheme.

How it works

• You pay for child care via your employer

• Vouchers are issued to you up to a maximum value of £6,000.

• These are passed to your child carers

• The child care voucher scheme is tax free.

In simple terms, you pay from your gross pay pay before tax is deducted meaning that you save up to £1,200.

• 20% undirect tax relief

• Great news for working familiies.

• Currently for children up to 5 years old.

• Will be extended to children up to 12 years old e.g. to help with after school care and school holiday care.