Update: The Government delays the introduction of the tax free childcare scheme

By Phil Moss, Tax Partner

Following my blog post of Friday 26th June about Childcare Vouchers, the Government subsequently announced that it is to delay introduction of the scheme until early 2017. Whilst the Government won a legal challenge in the Supreme Court over its decision to deliver childcare accounts through National Savings and Investments, the existing Employer-Supported Childcare scheme will now remain open to new entrants until Tax-Free Childcare is launched - whenever that may be.

As a result of the legal action, the court placed a suspension on the development of the scheme which prevented key delivery steps from taking place. This legal action was brought by a group of childcare voucher providers involved in the delivery of the current scheme that Tax-Free Childcare will eventually replace.

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