Help with child care costs
The Government’s commitment to providing help with childcare costs is a welcome boost for working families, albeit the assistance is being phased in from Autumn 2015. The relief will initially help families with children under age 5 and will be extended over time to include children under 12.
To be eligible for the relief, both parents must work (with each earning below £150,000) and they cannot be receiving tax credits or the universal credit.
The current proposal, which is subject to consultation, is that the Government will pay 20% toward child care costs up to £6,000 i.e. £1,200 per child.
The Government is still tinkering with company car benefits. The taxable benefit charge continues to rise and the bands on CO2 emissions decrease. The value to an employee of a company car will need to be looked at very carefully.
Future measures announced but not effective until 2014 include:
• Tax free reimbursement by employers to employees for payments of up to £500 on health related interventions to assist their return to work after a period of absence from work due to illness.
• The doubling of the threshold for income tax free employment-related loans from £5,000 to £10,000. This will be particularly welcome in London and the South East as season ticket prices continue to spiral at above inflation rates.
If you have any queries or questions on the proposed changes, please contact us.
Date: 22nd March, 2013
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22nd March, 2013
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