Changes to tax and childcare benefits
Mar 20, 2017
Employers may need to reconsider their benefit offerings, as tax savings through some salary sacrifice schemes will be abolished from 6 April 2017. While the clampdown will limit the extent to which staff benefit from tax and national insurance, schemes related to pension savings (including pensions advice), childcare, cycle-to-work and ultra-low emission cars will not be affected.
The government has also set up a new tax-free childcare scheme to help working parents whose individual earnings are less than £100,000 per year. Parents will now be eligible to receive 20% (to a maximum of £2000 per child or £4000 if a child is disabled) of their annual childcare cost. This is expected to be in force from 2017, though it will be rolled out to families with the youngest children first.