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The Guardian - UK
The Guardian - UK
Business
Rupert Jones

Parents saving up to £10,000 in nursery benefits may face unexpected tax bills

A child's foot in a pink sneaker dangles below the pedal of a yellow trike on a wooden floor
Some workplace nursery benefit schemes allow employees to pay their nursery fees from their pre-tax salary, but the schemes must meet strict rules. Photograph: Matt Cardy/Getty Images

Working parents could be hit with unexpected tax bills because of a clampdown on the misuse of a childcare “benefit” offered by some employers that lets people enjoy savings of up to £10,000 a year.

HM Revenue and Customs has turned its sights on some workplace nursery benefit schemes which allow employees to pay the fees out of their pre-tax salary, resulting in them making big savings on income tax and national insurance.

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