# The Employer Supported Childcare (Relevant Earnings and Excluded Amounts) Regulations 2011, Note: Explanatory note


(This note is not part of the Regulations)
Schedule 8 of the Finance Act 2011 amended sections 270A and 318A of, and inserted new sections 270B and 318AA into, the Income Tax (Earnings and Pensions) Act 2003 (“ITEPA”). These sections provide for limited tax relief where employers provide qualifying childcare vouchers or contract directly with childcare providers. As a result of these changes the amount of tax relief is determined on the basis of an estimate of an employee’s relevant earnings amount for the tax year. Under sections 270B and 318AA of ITEPA the “relevant earnings amount” is the sum of any “relevant earnings” and “amounts treated as earnings under Chapters 2 to 12 of Part 3 of ITEPA” less any “excluded amounts”.
These Regulations set out the meaning of “relevant earnings” and “excluded amounts” (regulations 3 and 4). The Regulations have retrospective effect from 6 April 2011 pursuant to the power in paragraph 9 of Schedule 8 to the Finance Act 2011.
Two Tax Information and Impact Notes covering this instrument were published in December 2010 alongside draft Finance Bill 2011 provisions with a further update in March 2011 and are available on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tins.htm. They remain an accurate summary of the impacts that apply to this instrument.

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Source: https://www.legislation.gov.uk/uksi/2011/1798/note (the official version)
Page: https://openlegislation.uk/employer-supported-childcare-relevant-earnings-and-excluded-amounts-regulations-2011/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.