Employer-supported childcare – Finance Bill comments
LITRG has commented on draft Finance Bill clauses which will restrict the tax exemption for employer-supported childcare, including childcare vouchers. The proposals introduce a new layer of complexity for employers and employees alike and the mechanism is, in our view, unworkable.
In response to the proposals, LITRG is calling for a full review of childcare policy across government. The aim must be to create a system simple enough for people to understand, and one that provides employees with certainty that they can meet their childcare costs without an unwelcome tax cost at a later point. The current proposals, inflexible on changes in circumstances and complex in their operation, do not fulfil that objective.
The interactions of the tax exemption with tax credits and the inevitable migration of childcare support to the new Universal Credit need full consideration.
To see the LITRG response please use the link below:
Contact: Kelly Sizer (please use form at http://www.litrg.org.uk/ContactUs)