Posted on February 22, 2018 by Liziy Allen in HR & Payroll.
The current Childcare Voucher scheme is closing to new entrants from 6th April 2018.
This means that you will need to be in receipt of Childcare Vouchers on or before 5th April 2018 to continue to benefit from the scheme. For many organisations the cut off will be the March payroll period.
Tax-Free Childcare is a Government scheme for working families to claim a top-up for childcare costs. The Government will pay up to £2 for every £8 you pay into your online account (equivalent to 20% of childcare costs). This is capped every 3 months at £500 in top-ups for each child.
The main changes with Tax-Free Childcare:
- Savings are applied per child, per household.
- Can be used for children up to 11 years old (16 if disabled).
- Self-employed parents can now join the scheme.
- You can receive up to £2,000 per child, per year towards your childcare costs, or £4,000 for a child who has a disability.
- You must re-confirm eligibility every three months.
To be eligible for Tax-Free Childcare you must meet the following criteria:
- If there are two parents in your household, both must be employed.
- Each parent (or single parent) must earn at least £120 a week (equal to 16 hours at the national minimum/living wage.
- Neither parent must earn over £100,000 per year.
- You cannot join if claiming Child Tax Credits, Universal Credit, or benefiting from the tax and NIC savings through Childcare Vouchers.
The Childcare Voucher scheme is managed by the employer and usually provided through salary sacrifice, which means employees can save on tax and NIC. Tax-Free Childcare however is managed through the Government and employers will play no part. Employees already in the childcare voucher scheme are not required to transfer to Tax-Free Childcare, unless you wish to, or if you change employer.
As with the childcare voucher scheme, money in your online account can only be used to pay for approved childcare providers. For details on approved childcare providers see here.
Some families will be better off in the Childcare Voucher Scheme, whereas others will be better off with Tax-Free Childcare. You will need to consider how your family’s circumstances may change in the future. To find out about your childcare entitlements and calculate whether you would be better off with Childcare Vouchers or Tax-Free Childcare, use the gov.uk childcare calculator.
Employees cannot be part of both schemes or re-join the Childcare Voucher scheme after 6th April 2018 if they leave.
For more information and advice on the changes to the National Living Wage and National Minimum Wage for 2018/19 please contact the Service Desk on 0345 222 1551 • Option 6 or email firstname.lastname@example.org
Posted on December 4, 2017 by Liziy Allen in HR & Payroll.
National Living and Minimum Wage April 2018
The Government have announced that with effect from 1 April 2018 the National Living Wage (NLW) and National Minimum Wage (NMW) will increase.
Read our blog for more details.
Posted on November 30, 2017 by Liziy Allen in HR & Payroll.
Changes to statutory maternity and sick pay rates in 2018
The government has recently announced the changes to statutory maternity and sick pay rates in 2018.
This includes maternity, adoption, paternity and shared parental pay.
Read our blog for more details.
Posted on August 16, 2017 by Liziy Allen in HR & Payroll.
Changes to the School Teachers Pay and Conditions Document (STPCD)
The new STPCD 2017 has now been published by the DfE with recommendations from the School Teachers Review Body.
Posted on July 28, 2017 by Liziy Allen in HR & Payroll.
Changes to employment tribunal fees
In July 2013 the Government introduced the Employment Tribunals and Employment Appeal Tribunal Fees Order 2013, which required all individuals to pay a fee to bring a claim to tribunal.
Posted on May 24, 2017 by Liziy Allen in HR & Payroll.
Changes to Intermediaries Legislation (IR35) and what this means for your school
The HMRC has recently announced changes to the Intermediaries Legislation and all public-sector employers are responsible for assessing any workers paid through an intermediary to see if IR35 applies.
Posted on March 7, 2017 by Liziy Allen in HR & Payroll.
More than 35 years after the United Kingdom’s Equal Pay Act was introduced, the Office for National Statistics released a report that found on average women earn around 19.2% less than men in the UK. In an attempt to tackle this issue, the UK Government has published the Equality Act 2010 (Gender Pay Gap Information) […]
Posted on March 2, 2017 by Liziy Allen in HR & Payroll.
The Green Book, which applies to all support staff working in schools, has been updated to reflect the changes introduced since the existing 2005 version was published. The updated Green Book Conditions of Service document now includes: All pay scales and allowances from 1997 to 2017 inclusive The revised maternity scheme, which was introduced in […]
Posted on January 13, 2017 by Liziy Allen in HR & Payroll.
Gender pay gap reporting webinar We uncovered a useful webinar on gender pay gap reporting by XpertHR which might be of interest to a number of academies and independent schools. The aim of the webinar, which takes place on Wednesday 8 February at 2pm – 3pm, is to help you determine whether or not your organisation […]
Posted on January 6, 2017 by Liziy Allen in HR & Payroll.
Statutory maternity and sick pay rates for 2017/18 The government has recently announced the changes to statutory maternity and sick pay rates in 2017. This includes adoption, paternity and shared parental pay. The weekly rate for maternity, paternity, adoption and shared parental pay will increase from £139.58 to £140.98 with effect from 2 April 2017. […]