Our five minute read, Tax Tips for UK doctors and dentists will help you save tax, get you organised with your tax affairs and make you feel at ease that everything is taken care of.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. The Financial Conduct Authority does not regulate tax advice.
The new tax free childcare scheme was introduced in April 2017. It was initially available to parents who have a child aged under four on 31st August 2017. The scheme is currently rolling out to other parents.
Free childcare provisions differ across England, Wales, Scotland and Northern Ireland, so you need to check what applies in the area you live in.
Who qualifies?
To qualify for the tax free childcare scheme you must meet the following criteria:
- both parents need to be working and be earning at least £120 per week if aged over 25 (some exceptions do exist)
- you will not be eligible if either of you expects to earn £100,000 or more
How it works:
The tax free childcare scheme is available to working parents who have children under 12, or 17 if the child is disabled.
Parents you can pay up to £10,000 of annual childcare costs for each child. If the child is disabled this doubled.
Only the first £10,000 of childcare costs benefit from tax relief. You are responsible for covering any additional costs.
The tax free childcare scheme cannot be used in conjunction with tax free childcare vouchers, so parents must choose which scheme covers the most benefit to them. The scheme can be helpful for people who are self-employed and who do not qualify for tax free childcare vouchers, or to employees whose employer does not provide them.
As the tax free childcare scheme increases with each child (unlike tax free childcare vouchers) it can also be helpful to parents who have more than one child and who have high childcare costs.
Dental & Medical Financial Services help doctors and dentists improve their tax position from careful tax planning.