The Income Tax (Qualifying Child Care) (Wales) Regulations, SI 2021/1344 amend ITEPA 2003 s 318C to ensure that employees who use qualifying tax-free childcare will continue to benefit from the existing income tax and NIC exemptions, following changes to legislation which defines ‘qualifying childcare’ in Wales.
ITEPA 2003 s 318C sets out the meaning of ‘qualifying childcare’ for the purposes of the tax-free employer-supported childcare scheme (the directly contracted scheme; the voucher scheme falls under s 270A). For the purposes of the scheme, qualifying childcare set out in s 318C is exempt from income tax and NICs.
Section 318C(3), which provides the definition of qualifying childcare in Wales, is updated to reflect the introduction of a new scheme in Wales which will apply for childcare approval applications from 1 April 2022. The change ensures that the tax and NICs exemptions continue to apply for approvals made under both the existing and new schemes in Wales. The regulations come into force on 22 December 2021.
The Income Tax (Qualifying Child Care) (Wales) Regulations, SI 2021/1344 amend ITEPA 2003 s 318C to ensure that employees who use qualifying tax-free childcare will continue to benefit from the existing income tax and NIC exemptions, following changes to legislation which defines ‘qualifying childcare’ in Wales.
ITEPA 2003 s 318C sets out the meaning of ‘qualifying childcare’ for the purposes of the tax-free employer-supported childcare scheme (the directly contracted scheme; the voucher scheme falls under s 270A). For the purposes of the scheme, qualifying childcare set out in s 318C is exempt from income tax and NICs.
Section 318C(3), which provides the definition of qualifying childcare in Wales, is updated to reflect the introduction of a new scheme in Wales which will apply for childcare approval applications from 1 April 2022. The change ensures that the tax and NICs exemptions continue to apply for approvals made under both the existing and new schemes in Wales. The regulations come into force on 22 December 2021.
