The government’s hard-fought victory in a dispute over Tax-Free Childcare brings some confidence back to a development with significant implications for healthcare accounting.
Many members of the medical profession work long hours and unsociable shifts, and where a workplace romance leads to parenthood, this can leave both parents considering their career options.
Until now, there have been childcare vouchers to help counteract the tax implications of having somebody look after your baby, but the new scheme should streamline the process and make it easier to factor childcare – and the tax breaks attached to it – into healthcare accounting for the future.
However, the legal challenge launched by several companies involved in providing and operating the vouchers, which will presumably no longer be needed under the new approach, has led to a delay in the introduction of Tax-Free Childcare.
It is now expected to arrive in early 2017, which at least gives doctors’ accountants chance to fully understand the details of the scheme before it comes into effect.
Damian Hinds, Exchequer secretary to the Treasury, said: “We are pleased that the government’s proposals for delivering Tax-Free Childcare have been found to be clearly lawful.
“We are now pressing ahead with the scheme as part of our ongoing commitment to support working families.”
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