CoB to support Tax-Free Childcare
HMRC announced that Tax-Free Childcare (TFC) will be extended to all children under the age of 12 in September and confirmed in an announcement in January that the scheme was extend to all children under nine years old. Once TFC is fully implemented, the existing employer-supported Childcare Voucher scheme be closed. From the start of April, the Childcare Voucher scheme will be closed to new applicants, although parents already signed up for Childcare Vouchers will be unaffected.
We will be rolling out support for TFC before April, enabling you to provide up to 30 hours for parents that are eligible, as well as using funds paid via the TFC system, in much the same way that childcare vouchers are now, as parents can choose to pay via the aforementioned system.
On the plus side any funds transferred to you will have a unique reference number of 4 letters and 5 numbers, followed by 'TFC'.?The letters are made up of the first initial and the first 3 letters of the surname of the parent making the payment. For example, AJON12345TFC.
This will make reconciling payments far easier than the current childcare voucher system!