Parents using tax-cutting childcare schemes face crackdown

As HM Revenue and Customs cracks down on increasingly popular tax-saving childcare schemes, The Daily Telegraph highlights that working parents could be hit with shock bills.

Partner Marilyn McKeever comments on the tax implications of the so-called workplace nursery benefit schemes which promise to save parents thousands of pounds a year in tax by paying their nursery fees out of their salary.

‘Schemes which satisfy the conditions legitimately save tax. Under other schemes, the employer pays for a nursery place for an employee’s child, together with an additional fee for the scheme promoter. They then appoint the promoter as their “agent” for the management of the nursery, but the employer is not involved in the running of the nursery in practice. These schemes will not achieve the tax saving.’

Subscribers can access the full article and learn more about these childcare schemes on The Daily Telegraph website.