Childcare Archives - WRLO Accountants

HMRC updates guidance on reduced VAT rate for summer holidays

WRLO Accountants — Mon, 17 Aug 2026 16:50:29 +0000

HMRC has updated its guidance on the temporary reduced rate of VAT applicable to children’s meals, family attractions and tickets. Between 25 June and 1 September 2026, the rate of VAT on children’s meals and specific attractions is reduced from 20% to 5%. The new guidance, issued on 27 July, includes additional details on party packages, prepayments and mixed supplies. The latest guidance also confirms that users of the flat rate scheme should continue to apply their current percentage to calculate their VAT liability, and that the temporary reduced rate doesn’t apply to margin scheme supplies under the tour operator’s margin scheme. Ed Saltmarsh, Tax Technical Manager at the Institute of Chartered Accountants in England and Wales (ICAEW), said: ‘We highlighted the challenges facing businesses in dealing with the temporary VAT cut, from having to update materials, processes and systems at short notice to dealing with boundary issues, when it was first announced. ‘The fact that HMRC has had to update its guidance one month after the policy took effect highlights the complexity of this measure.’ Press release: ICAEW HMRC guidance: Revenue and Customs Brief 5

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Young people reminded to reclaim government savings

WRLO Accountants — Fri, 04 Oct 2024 19:34:50 +0000

Over half a million young people are yet to lay claim to Child Trust Funds worth an average of £2,212, HMRC has said. Child Trust Funds are long term, tax-free savings accounts which were set up, with the government depositing £250, for every child born between 1 September 2002 and 2 January 2011. Young people can take control of their Child Trust Fund at 16 and withdraw funds when they turn 18 and the account matures. The savings are not held by the government but are held in banks, building societies or other saving providers. The money stays in the account until it’s withdrawn or re-invested. If teenagers or their parents and guardians already know who their Child Trust Fund provider is, they can contact them directly. If they do not know where their account is, they can use the online tool on GOV.UK to find out their Child Trust Fund provider. Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, said: ‘Thousands of Child Trust Fund accounts are sitting unclaimed – we want to reunite young people with their money and we’re making the process as simple as possible. ‘You don’t need to pay anyone to find your […]

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HMRC urges nearly 430,000 young people to claim Child Trust Fund cash

WRLO Accountants — Mon, 09 Oct 2023 15:48:44 +0000

HMRC has urged almost 430,000 young people with an unclaimed Child Trust Fund (CTF) to claim their cash. CTFs are tax-free savings accounts that were created for every child born between 1 September 2002 and 2 January 2011. The government contributed an initial deposit of at least £250. Family and friends can contribute up to a maximum of £9,000 in any one year into an existing CTF account. CTF accounts began to mature in September 2020 when the first children turned 18. HMRC revealed that there are currently 5.3 million open CTF accounts, and that more than 500,000 matured CTF accounts have been claimed or transferred into an ISA since September 2020. Angela MacDonald, Deputy Chief Executive at HMRC, said: ‘Many 18–21-year-olds are starting out in first jobs or apprenticeships, starting university or moving into their first home and their CTF is a pot of money with their name on. ‘I would encourage young people to use the online tool to track it down or, for parents of teenagers, to speak to them to ensure they’re aware of their CTF. It could make a real difference to their future plans.’ Internet link: HMRC website

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