SELF EMPLOYED – HELP WITH CHILDCARE COSTS

The scheme, introduced in April 2017, is available to all qualifying parents whether employed or self-employed.  The previous scheme of Childcare vouchers was only available if employers offered it and there was no such scheme for the self-employed.

The scheme is for parents whose youngest child is under 12 (under 17 if disabled) and you can receive up to £2,000 per year or £4,000 for disabled children, towards regulated childcare costs e.g. nurseries, childminders, after-school clubs or holiday clubs.

For Tax-Free Childcare both you and any partner (in the same household) are expected to earn, on average, the equivalent of 16 hours per week at the national living or minimum wage.  If your self-employed income varies from week to week, provided the 3 monthly average is equivalent to the minimum required then you will still be eligible.  However, if either parent earns more than £100,000 then you cannot claim for Tax-Free Childcare.

Parents on maternity, paternity, adoption leave, unable to work due to disability or caring responsibilities still may be able eligible.

Can I Get Help with my Childcare Costs? gives details of the new Tax-Free Childcare scheme and other available help with childcare costs.

If your employer still runs the Employer-Supported Childcare scheme (“Childcare Vouchers”) you may still be able to join up to 5 October 2018.  The HMRC website details the criteria for this.

Your circumstances will determine which scheme at present is best for you.  The HMRC childcare calculator will help with this decision.