Childcare and Tax

MonkeyMoo2

I have a question regarding childcare and tax. I am self employed working from home with a small child. My husband earns around £25k and although the profit on my business was only £18 in the last tax year it was decided that our combined income means that although we qualify for Child Tax Credits (a measly £50 per month) i do not qualify for any Working Tax Credits even though my son goes to a registered childminder a couple of days per week allowing me to network and visit customers. I therefore feel justified in putting my childcare costs as an expense of my business against tax as I would not have to pay any childcare if I did not have to work. If I received any WTC I would not feel justified in doing this but as I do not I feel that this is a genuine expense of running my business and should go against any tax I pay. Can anyone tell me if I am correct or am i defrauding the Tax Office?
Thanks. Rachael.

fengirl_2

No, childcare costs are not allowable against tax, whether you are employed or self employed. They are a personal expense.

Ste_C

Millions of people choose to pay for someone to mind their child while they work - it's just one of the associated costs of having children and is totally unrelated to your business. :rotfl: The revenue wouldn't think you were defrauding them, they'd probably just roll about laughing!

Caroline73_2

So your profit will be a lot more than £18!