Child Care Tax Relief

Roofer_2

As I'm self employed I can't get childcare tax vouchers, does anyone know if there is a similar scheme for self employed people?

Lifeisbutadream

Why cant you get vouchers? I can.

I presume that you mean free child places for 3 year olds?

My nursery sorts it out for me - just speak to your childcare provider.

Roofer_2

Not sure if we are talking about the same thing - hope so.

My baby is 6 months old and in a full time creche, my understanding is that employers can offer tax free childcare vouchers to employees but I don't know how a self employed person goes about getting these. Only company I rang said it didn't apply to self employed people.

If you can throw any more light on it please do?

Thanks

Lifeisbutadream

No we werent talking about the same thing - when your child is 3 they will be eligible for a free child care place - but youre a while off that yet!

You would only be eligible for child tax vouchers if you worked for someone who provided them so no you wont get them, but you wouldnt automatically get them if you were emplyed - only if your employer provided them..

As far as I know anyway - I have never been lucky enough to work for a company that provided vouchers.

Only advice I can give is that if you are self employed and can work any hours try and find another mum with whom to swap child care with - I find it works really well, but my kids are older - 4 and 7. Once they get nursery places it gets much easier - I can work from 9am - 12noon every day with no child care costs and will have from 9am - 3.30pm when the youngest goes to school in January..

WHA

Talk to your account about converting into your own private limited company. As your limited company would employ you, it could also provide childcare vouchers. Obviously it's not quite that simple and there are pros and cons of becomming a limited company, but the free childcare vouchers could well swing it to be advantageous.

Lifeisbutadream

WHA wrote:

Talk to your account about converting into your own private limited company. As your limited company would employ you, it could also provide childcare vouchers. Obviously it's not quite that simple and there are pros and cons of becomming a limited company, but the free childcare vouchers could well swing it to be advantageous.

Thats a brilliant idea - im going to look into that one myself..

scope

Lifeisbutadream wrote:

No we werent talking about the same thing - when your child is 3 they will be eligible for a free child care place - but youre a while off that yet!

Slight correction.. They are eligible to 2 1/2 hours every day, or 1 session, as they call it. And this is only during school term - outside term you get nothing.

appleyard

Scope is correct - the difference is that its not perceived as child care, its state funded child education just like school, so termly and sessional, certainly not all day. If terms are longer than normal nurseries / preschools can choose to shut early or ask you to pay extra for the non covered weeks.

In essence, provision for the over threes is not there to make our lives more manageable but to give children an education if you see the distinction i'm trying to make.

Going Limited would appear to be the best way through it. if you're paying for full time nursery provision of a baby of that age the cost of going limited plus the minor extra hassles would be completely outweighed by the tax reduction.

best of luck!

screwed_constantly

I agree it is probably best to talk to your accountant as I think the fees are more expensive for Ltd Company accounts so you would have to way up the pros and cons.Good luck .I had never heard of such a scheme maybe only large employers offer this service as there is some administration involved i am sure!!

screwed_constantly

Just found the website https://www.childcarevouchers.co.uk.There is a FAQ sections .Check it out.Hope it will be of use to you.

Roofer_2

Many thanks for all your suggestions. Going to check out the Limited Company option now.

Cheers