Nursery World - To the max

New tax breaks should help employers provide childcare benefits. Carolyn Howes of the Inland Revenue advises At last it seems the Government is recognising that the high cost of good quality childcare can be a barrier to parents who want to return to work or increase their working hours after having children. Since 6 April, new tax breaks have been introduced for employers to help them provide childcare benefits for their staff. But will they help everyone?

At last it seems the Government is recognising that the high cost of good quality childcare can be a barrier to parents who want to return to work or increase their working hours after having children. Since 6 April, new tax breaks have been introduced for employers to help them provide childcare benefits for their staff. But will they help everyone?

Assistance is already available to low-to-middle-income families through the tax credits system. The childcare element of working tax credit provides help of up to 70 per cent of the cost of registered or approved childcare up to maximum limits. From 6 April the limits are 175 for one child and Pounds 300 for two or more children. And the level of help will increase further in April 2006, from 70 per cent to 80 per cent of childcare costs.

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