Tax relief for childcare vouchers in the UK

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The UK government decided yesterday to retain the tax relief for childcare vouchers, limiting it to the basic rate of tax for all users. This will apply from April 2011.

The news was confirmed to Sodexo and other childcare vouchers operators by senior policy advisers at No 10, and was outlined in a letter to the joint chairs of the Parliamentary Labour Party Women’s Committee.

The government decided to allow all users to continue to use the scheme whilst limiting to only the basic rate element of tax.

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