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Income Tax (Exempt Amount for Childcare Vouchers and for Employer Contracted Childcare) Order 2013
LNB News 08/03/2013 126
Published Date

8 March 2013

Jurisdiction

England; Northern Ireland; Scotland; Wales

Enactment Citation

SI 2013/513

Commencement date

6 April 2013

Legislation Affected

Income Tax (Earnings and Pensions) Act 2003 amended

Abstract

SI 2013/513: he exempt value of childcare vouchers and directly contracted childcare provided for additional rate taxpayers is increased from £22 per week to £25 per week, from 6 April 2013. The increase is due to the change in the rate of income tax for additional rate taxpayers

Summary

Legislative background

This Order amends the Income Tax (Earnings and Pensions) Act 2003, ss 270A(6ZA) and 318A(6A).

These sections provide for limited tax relief where employers provide qualifying childcare vouchers or contract directly with childcare providers.

The amount of tax relief is determined on the basis of an estimate of an employee’s relevant earnings for the tax year. For additional rate taxpayers the maximum weekly amount which can be subject to tax relief is £22.

What’s changing?

This Order amends the maximum weekly amount which can be subject to tax relief with effect from 6 April 2013 to £25.