Help with childcare costs for self-employed

money_saver_4

Can anyone advise me if there is any help available with childcare costs for self-employed. Both my husband and I are self-employed and jointly earn around £44000 (although it is more than likely to go down due to the economic situation). Our child credit is around £200 a year! So not much help.

I know that if we were employed, we could pay for childcare out of our pre-tax income. But I believe as self-employed, we are not entitled to this. So it would get very expensive. Please help, as my little boy is old enough to go nursery and I think he would benefit from a change of scene. But not sure we can afford it.

Auzelia

im not sure about money costs, but if your little one is old enough for nursery would that not mean that he would qualify for his free childcare place.
Think its 12.5 hours a week (may be 15 hours).

alwaysonthego_2

Auzelia wrote: »

im not sure about money costs, but if your little one is old enough for nursery would that not mean that he would qualify for his free childcare place.
Think its 12.5 hours a week (may be 15 hours).

It is presently the term after their third birthday when they get the free hours.

I am not sure whether you would qualify for the childcare vouchers, will have to have a look.

Auzelia

I know my LO has to wait nearly a whole year before he gets his (next year) due to his nursery intake being September. (Used to be February and September but they stopped the February one)

alwaysonthego_2

Reference : Employers for childcare available from:
http://www.employersforchildcare.org/parents/FAQs/


I am self-employed. Can I use Childcare vouchers?


no, because:
• Childcare vouchers come under ‘employer supported childcare’ and self employed people do not have an employer
• self employed people pay a different class of National Insurance Contributions
• Self employed people make a tax return at the end of the year and pay a tax bill based on their earnings for that year. Their tax bill is therefore worked out retrospectively and childcare vouchers cannot be claimed retrospectively

If, however, a person has set up their own company and is then employed in that company they may be able to access childcare vouchers. Self employed people would need to check their personal circumstances with their accountant as it may be more tax efficient for them to be classed as self-employed.

money_saver_4

My little one is 16 months, so does not qualify for pre-school type vouchers. As for employing ourselves, we trade as a partnership, I don't due to the nature of our profession we are allowed to trade as a limited company, and therefore can not employ ourselves. Any other suggestions are welcome.

LizzieS_2

Auzelia wrote: »

I know my LO has to wait nearly a whole year before he gets his (next year) due to his nursery intake being September. (Used to be February and September but they stopped the February one)

You are entitled to use a private nursery and claim 38 weeks of the costs of the allowed child 'education' for 3 year olds.