Nursery World - Tax credit changes seek users' views

Childcare providers have been invited by the Inland Revenue to suggest ways to improve the childcare tax credit element of its new employment tax credit, which is to replace the Working Families Tax Credit across the UK in 2003. The invitation was made last week in an Inland Revenue consultation document, New Tax Credits - Supporting Families, Making Work Pay and Tackling Poverty. This outlines proposals for creating two new national tax credits, the integrated child credit and the employment tax credit. The two will replace the Working Families Tax Credit, the Children's Tax Credit and the Disabled Person's Tax Credit, as well as the child-related payments in Income Support and income-based Jobseekers' Allowance.

The invitation was made last week in an Inland Revenue consultation document, New Tax Credits - Supporting Families, Making Work Pay and Tackling Poverty. This outlines proposals for creating two new national tax credits, the integrated child credit and the employment tax credit. The two will replace the Working Families Tax Credit, the Children's Tax Credit and the Disabled Person's Tax Credit, as well as the child-related payments in Income Support and income-based Jobseekers' Allowance.

The integrated child credit will comprise a family element which broadly replicates the Children's Tax Credit, which was only introduced in April, a child element for each child in the family, and a higher family element for families with one or more children under the age of one. There will be additional support for families caring for children with a disability.

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