HMRC issue updated guidance for employees on childcare
HMRC have updated their guidance on employers helping with childcare costs.
Leaflet IR155 which sets out the circumstances and the amounts of tax and National Insurance (NI) free childcare costs that an employer may provide has been updated.
The update reflects the change to the rules which mean that where a new claimant enters into a scheme from 6 April 2011 the amount of exempt childcare is restricted
- for higher rate taxpayers to £28 a week, and
- for additional rate taxpayers to £22 a week.
The amount available to basic rate tax payers and those in relevant schemes prior to 6 April 2011 remains at £55 a week.
If you would like any further information on tax and NI efficient childcare please do get in touch.
Internet link: IR155 leaflet