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Tax-Free Childcare (TFC) - Public fund?

Archived UK Tier 1 (General) points system forum. This route no longer exists.

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t1s2010
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Tax-Free Childcare (TFC) - Public fund?

Post by t1s2010 » Thu Apr 30, 2015 1:28 pm

Friends,

I being on tier-1 and spouse as dependent, does this TFC scheme falls in public fund?
Or, it does not because it is connected to 'when you earn, then gov adds it as tax relief'.

Really appreciate any reference material to point to either direction or how to confirm it.
The new TFC scheme will be introduced from Autumn 2015 and will allow eligible parents to save up to £2000 per child on their annual childcare bill.
• Parents will be able to open an online account, which they can pay into to cover the cost of childcare with a registered provider. This will be administered by National Savings and Investments rather than their employer.
• The government will top up the account with 20% of childcare costs up to a total of £10,000 - the equivalent of up to £2,000 support per child, per year. So for every 80p the parent or someone else pays in, the government will top up an extra 20p.

t1s2010
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Posts: 346
Joined: Mon Aug 23, 2010 9:09 am
Location: London

Re: Tax-Free Childcare (TFC) - Public fund?

Post by t1s2010 » Thu Apr 30, 2015 1:40 pm

Reading legal consultation is not my forte.
From document, it talks about 'working in UK' but not UK national per se.

Anyone, any views please?

https://www.gov.uk/government/uploads/s ... sponse.pdf
Support for parents resident or working in the UK
2.49 Tax-Free Childcare will support parents who are in work or want to work, to benefit
families and the wider UK economy. Tax-Free Childcare will therefore be restricted to parents
who live or work in the UK.
2.50 The Government, however, recognises that there will be cases where parents need
childcare support when they are absent from the UK and working abroad. Parents who work
overseas for an extended period for the UK government, such as members of the armed forces,
are still required to pay UK tax and the Government will allow these parents and their partners
access to Tax-Free Childcare. This follows the approach in tax credits and Universal Credit by
treating these households as if they were resident in the UK and, at the Government’s discretion,
classifying certain childcare providers overseas as providing ‘qualifying childcare’ for the
purposes of Tax-Free Childcare.
2.51 Periods of short, temporary absence from the UK will also be disregarded for the parent who
is the Tax-Free Childcare account holder. This offers a level of stability where members of the
household are absent. A parent can be temporarily absent abroad for up to eight weeks for any
reason, for example, a holiday or visiting relatives; or for a longer period for up to six months in
exceptional circumstances, for example, where a parent is undergoing medical treatment abroad,
is a mariner, or is an oil worker on the continental shelf. During this time, the parent will remain
eligible for Tax-Free Childcare. This takes the same approach as Universal Credit.

hellonewhere
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Re: Tax-Free Childcare (TFC) - Public fund?

Post by hellonewhere » Thu May 07, 2015 8:59 am

Is that not just a replacement of childcare vouchers?

Childcare vouchers aren't public funds; they are a "salary sacrifice".
You and your partner are effectively paying for it, but given a "tax relief". It's taken from your gross salary, instead of net.

How it will work

The new system will provide 20p for each £1 spent on childcare, up to a maximum of £2,000 per child. A family with two children, where both parents work and pay basic rate tax, will be better off if they spend more than £5,832 a year on childcare.

The disadvantaged will be families where just one parent is employed, as both must be in work to qualify for the new scheme.

Many higher-rate and all top-rate taxpayers will be worse off. Families with one child where both parents pay 40pc tax can currently save up to £2,450 under the voucher system. Under the new scheme, the maximum will fall to £2,000. Families where one parent earns £150,000 or more will be ineligible.


A great discussion on whether childcare vouchers are public funds or not can be found here;
http://www.immigrationboards.com/claimi ... 62376.html

Just to add; this link is on this board itself; if I am wrong to link it here, moderators please feel free to remove it.

I might be wrong ( no kids myself ), someone will correct me soon.

t1s2010
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Posts: 346
Joined: Mon Aug 23, 2010 9:09 am
Location: London

Re: Tax-Free Childcare (TFC) - Public fund?

Post by t1s2010 » Thu May 07, 2015 10:04 am

Confirmed. New tax-free childcare is not a public fund.

Just received email from a reputed childcare voucher provider of our company.

hellonewhere
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Re: Tax-Free Childcare (TFC) - Public fund?

Post by hellonewhere » Thu May 07, 2015 10:11 am

t1s2010 wrote:Confirmed. New tax-free childcare is not a public fund.

Just received email from a reputed childcare voucher provider of our company.

Yup, any salary sacrifice isn't public funds.

northing
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Re: Tax-Free Childcare (TFC) - Public fund?

Post by northing » Thu Jun 22, 2017 7:06 pm

I realize this is an old thread, but for anyone looking for more information...
Tax-free childcare IS considered a public fund - guidance from the government here:
https://www.gov.uk/government/uploads/s ... idance.pdf

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CR001
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Re: Tax-Free Childcare (TFC) - Public fund?

Post by CR001 » Thu Jun 22, 2017 7:28 pm

northing wrote:I realize this is an old thread, but for anyone looking for more information...
Tax-free childcare IS considered a public fund - guidance from the government here:
https://www.gov.uk/government/uploads/s ... idance.pdf
Kindly refrain from digging up old threads to post in a sub forum that is not about benefits, there is a specific sub forum further down the main page.
Char (CR001 not Casa)
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Please DO NOT send me a PM for immigration advice. I reserve the right to ignore the PM and not respond.

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