Problems with the childcare tax credit need to be sorted out by the Inland Revenue if the childcare strategy is to succeed, the Scottish Childminding Association (SCMA) has warned.
The Inland Revenue launched a consultation last month setting out plans to create two new UK-wide tax credits from 2003, an integrated child credit and an employment tax credit. These credits would replace existing schemes (see news, 26 July). The childcare tax credit, which families currently can claim for up to 70 per cent of their eligible childcare costs, would become part of the new employment tax credit.
Maggie Simpson, the SCMA's national development officer, said that if the Government wanted to continue to expand provision in line with the national childcare strategy it was crucial that the childcare tax credit should work.
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