Patricia Mock, a tax director in the private client services practice at Deloitte, comments: "The increase from £1,200 as previously announced, to £2,000 childcare allowance per child will be welcome to families. The allowance will pay 20% of childcare costs and so a family would need to spend £10,000 a year to get the full amount of credit. It is good news for the self-employed and those whose employers do not offer employer sponsored childcare vouchers.
"However, those who are in employer schemes will need to compare the value of the two schemes before they choose which one to select."
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