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Employer Supported Childcare 0
There are new rules from 6 April 2011 and the exact details have now been published. The amount of exempt childcare that can be provided to a given employee will depend upon a 'basic earnings assessment' made by the employer at the beginning of the tax year.
If the assessment shows that the employee is likely to be paying income tax at the 40% or 50% rate, the weekly limits will be £28 and £22 respectively.
Basic rate taxpayers and those who already participate in an employer-supported childcare scheme before 6 April 2011 will be subject to the familiar £55 per week limit.
HMRC have published two sets of questions and answers, for employers and employees respectively, to highlight the changes and we will be pleased to advise you by reference to your specific circumstances
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