The Childcare Tax Burden

I'm not really one to whinge (cue incredulous guffaws from my family). Seriously though, I count myself lucky that I have 2 great kids, a husband who is... (can't quite find the right adjective so I will move on), a job I love and a roof over my head

27/07/2012

 

I'm not even one of those politician-bashers.

I know the Government is far from perfect, but in all honesty can any one of us do a better job in these appalling economic times?

The tax double whammy

However there are a few things that I get riled up about. One is benefit scammers. Enough said.

Number two is Tax

It's not that I'm against paying it - I like that we have a free health service. It's more the fact that in order for me to work, I have to pay for childcare.

That's fine, but it means the Government takes tax out of my pay, and then after they have done that I then have to pay the government tax again because I employ someone in order for me to work. I call it the tax double whammy. The government gets twice the amount of money from me, because I work rather than live off benefits.

In many other European countries, this doesn't happen

Childcare is heavily subsidised or there are substantial tax breaks for working parents (and I don't mean tax credits, which few working parents can qualify for, or those measly childcare vouchers).

The reason for my current rant is because over the next few years, the Government is going to add to my childcare costs by forcing me to provide a pension scheme for my childcarer to which I must contribute.

Phasing in the pension enrolment

Like I said, I'm not a big complainer, and this is not a huge rant. To be honest, I'm unlikely to get hit by the law, because they are phasing in the pension enrolment and small employers like me probably won't have to start a scheme until 2017. By then in theory I shouldn't need a nanny.

But I do like to rant on other people's behalf, so I'm doing this for all working mums, past, present and future.

Let me know what you think about the pension reforms, or any other issues I've raised.

Amanda Coxen, Working Mum and Tinies Director

 
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