A major tax break for parents has been unveiled on the eve of this year's Budget.
The £2,000-a-year childcare tax break will allow parents to avoid paying basic rate income tax of 20 per cent on childcare costs of up to £10,000.
This is up from the proposed £6,000 and self-employed and part-time workers will also be included after a lower earnings threshold of £50 per week was set.
David Cameron announced the scheme of the eve of this year's Budget with the tax break being rolled out in the autumn of 2015.
The Prime Minister said it would allow parents to chose to go out and work longer hours and will apply to all children under 12.
"People I've been talking to are working two days a week, three days a week, who would dearly love to work another day or work some more hours, but they can't make the sums add up because the childcare is expensive and they are not earning enough," Mr Cameron said.
"So this will help them to choose – do I want to work more? Do I want to take that choice to give more stability and security to my family? It's about helping parents to back the choice that they make."
A number of other measures in this year's Budget have already been announced.
The personal income tax allowance will up from £9,440 to £10,000 in April 2014.
The ceiling for paying the 20 per cent basic rate tax is cut from £32,010 to £31,865 but the threshold for paying the 40 per cent higher tax rate will go up one per cent in April, from 41,450 to to £41,865, helped by the hike in the person tax allowance
The point at which you pay National Insurance contributions is going up from £7,755 to £7,956 and the upper earnings limit from £41,450 to £41,865.
VAT on goods bought online is set to rocket because you will have to pay the rate in Britain (20 per cent) and not that of the home country of the retailer - for example for Amazon this Luxembourg at just three per cent.
Allowances for paying into an Isa savings account will also go up next month from £5,760 to £5,940 for a cash Isa but the amount you can pay into your pension with tax relief is being cut by £10,000 to £40,000.
Corporation tax is being cut by two per cent to 21 per cent and will be cut again to 20 per cent next April.
Duty on alcohol and tobacco will rise by two per cent more than inflation.
Benefits will got up by the rate of inflation or one per cent, whichever is lower.
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