Tax credits childcare element -nannies

claudib

Hi there,
Me and my partner are both employed/self-employed earning average total of £22,000 per year. So far for childcare i have used friends paying out of my own pocket but have now found a nanny who is ofsted registered. As i am freelance i sometimes might need childcare for, say, 4 days one week and then none for 2 weeks. The nanny is happy with this and is flexible. So how do i work it so tht i can get the childcare element? Do i have to show tax credits a contract? Would i work out an average weekly childcare? And how reliable are they at actually paying out? (the nanny's hourly rates are the same as my earnings!!)

DaisyFlower

You both need to work 16 hours a week to claim childcare from tax credits.

As a nanny she would be your employee so you would need to pay her tax and NI and ensure you have insurance for employees.

Tax credits check childcare claims so you would have to prove the amount you have claimed for matches what you have paid her.