Income Tax (Earnings and Pensions) Act 2003 section 318D

Childcare: power to vary amounts which are the exempt amount and qualifying conditions

Section 318D gives the Treasury the power to change the exempt amounts and qualifying conditions for the employer-supported childcare exemptions.

• The Treasury can change by order the monetary amounts that are exempt for employer-contracted childcare under section 318A(6A)
• The Treasury can also amend by regulations the qualifying conditions for childcare exemptions under sections 318 and 318A
• Any changes to qualifying conditions should be aligned with corresponding rules for the childcare element of working tax credit and universal credit childcare costs
• The relevant alignment legislation includes the Tax Credits Act 2002, the Welfare Reform Act 2012, and the Welfare Reform (Northern Ireland) Order 2015

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