Clarity on the Government's response to the childcare voucher petition
A big thank you to everyone who signed the petition – we’ve smashed the 100,000 signatures needed and a date (15 January 2018) has now been set for the petition to be debated in parliament. If you signed the petition, or visited the petition page, you will have seen the government’s response. It pitched TFC against childcare vouchers rather than both schemes running alongside each other, as the petition called for. The Childcare Voucher Providers Association (CVPA) believes there are some important facts to understand about the benefits of childcare vouchers that parents are set to lose. Head over to our blog for more on the response.
Money Advice Service - helping your employees beat financial stress
With Christmas just around the corner, some of your employees might be concerned about how they’re going to pay for it. Did you know, the average UK family was planning to spend over £800 on Christmas last year* - from presents to food, the costs can quickly add up. Money worries are one of the main contributors to stress, anxiety and depression, and can have a big impact on an employee’s productivity. With that in mind, the Money Advice Service offers some great tips on how to beat financial stress, from being Christmas ready to managing money, budgeting, debt and much, much more. If you’d like to add a link to the Money Advice Service from your Salary Extras platform, please get in touch with your Relationship Manager or email us. *Source: Money Advice Service website
Tax - Free Childcare - the nitty gritty
Why it's important to get all eligible parents on your scheme before April 2018
While some parents will be better off with TFC, the eligibility criteria are extensive and detailed. Research has also shown that the majority of working families will be better off with childcare vouchers, tax credits or a combination of both*.
If all your working parents have registered for childcare vouchers by April 2018 – even if only for the minimum amount and/or one order in every rolling 12-month period – they then have the freedom to take their time working out whether childcare vouchers or TFC is better for their family.
They can then switch from childcare vouchers to TFC at any time, even after April 2018.
If they haven't joined your childcare voucher scheme by April 2018, then TFC will be their only option (assuming they're eligible for it).
Get in touch with your Relationship Manager or email us if you'd like free childcare voucher and TFC materials. Alternatively, simply download them from our Give Yourself a Choice website.
Updated Childcare Vouchers vs. Tax-Free Childcare Decision Tree – a useful tool for all your working parents
Only 5% of parents feel "very well informed" about Tax-Free Childcare (TFC), according to research by the Childcare Voucher Providers Association (CVPA). Of those who had received information about TFC, around half got it from their employer and/or childcare voucher provider.
So, although neither of us are involved in the new TFC scheme, we both obviously have an important educational role to play so that parents can make an informed decision.
We've recently updated our Decision Tree, a tool that helps parents navigate through a series of simple questions to find out which scheme – childcare vouchers or TFC - is best for them and their family.
Please share our Give Yourself a Choice website and Decision Tree with your employees.
Completing a Childcare Account Notice (CAN) after successfully applying for TFC
If one of your parents is eligible for both childcare vouchers and TFC and, having gone through our decision tree and a TFC health check, come to the decision that TFC is better for them, there's a couple of things they'll need to consider…
> They can continue to take childcare vouchers for up to three months following their successful TFC application. We're not suggesting breaking any rules, this is guidance published by HMRC.
> They need to complete a Childcare Account Notice (CAN) before their first TFC self-assessment (which is after 3 months). They can call 0345 002 1111 or email us at parent@computershare.co.uk for a CAN form.
If, after joining TFC they realise the scheme is not for them, they can re-join your childcare voucher scheme providing they haven't completed a CAN form and it's before the April 2018 deadline.