30 hours ‘free’ childcare - running limited company

pjs493

My husband died last year suddenly and unexpectedly. He was working full time and I was completing a PhD full time before going on maternity leave when our youngest was born 9 months before he died. Instead of returning from maternity leave after 12 months I continued to take leave but for compassionate reasons. 

Having lost my husband I’m just not mentally able to go back to my studies and have compassionate leave in place until the end of the year. About 18 months ago my husband and I started a small limited company and ran it in our spare time. As it’s still early days for the company it has yet to make a profit. If my husband hadn’t died when he did, and I hadn’t put the business on hold for several months, we would have made a profit for the current financial year for the business. Although not enough to pay a salary yet equivalent to the minimum required for the free childcare hours. 

I’m aware of the minimum earning amount to qualify for the 30 free hours of childcare, but have previously been told that none of my income streams qualify (rental income, scholarship for my PhD, and now a pension following my husband’s death). I earn too much and have too much in savings to qualify for any benefits (beyond child benefit and bereavement allowance). 

However, now that I’m continuing with the business I wonder if this could help me qualify for the free childcare hours in some way. I understand that self employed people can be eligible for the free hours if they don’t meet the income threshold, but could I with running a limited company? Even when I was doing my PhD full time (before maternity leave) I was devoting at least 30 hours per week to the business. Now, without my husband to share the burden, I’m easily working full time for the business but don’t draw any income because the company has yet to make a profit. I’ve only recently been able to repay the capital investment my husband and I put into the business to set it up. So the company is now self sufficient and has a number of assets, but still a way off being able to pay myself a salary just to qualify for free childcare. 

I’m currently managing the business full time while also looking after two children under the age of three while dealing with the trauma of losing my husband. I can’t afford to pay for childcare but can’t afford to wrap up the company to become a full time mum either. But in any case, the company was a dream my husband and I had, it’s going in the right direction, and I enjoy building it. 

I feel like I really do fall between the cracks when it comes to this. 

sheramber

Working hours do not count for tax free childcare. It is  based on meeting the income criteria.

Once your older child is three you can get 15 hours free childcare regqrdless of  not earning a certian amount.

Under 3  you need to be inreceipt of qulaifying benefits  to get  15 hours free childcare

f I’m not eligible for the 30-hour offer, can I still get my 15 hours?

If your child is three or four and you don’t meet the criteria for the 30 hours, you will still be eligible for the 15-hour offer as this is universal.

If your child is two and you don’t meet the criteria for funded scheme for working families, then you will only be eligible for 15 hours if you are in receipt of certain benefits (listed above).

If your child is under two and you don’t meet the criteria for funded scheme for working families, then you will not be eligible for any funded care and education.

Full details can be read here https://www.eyalliance.org.uk/free-childcare-offers-what-parents-and-carers-need-know?gad_source=1

pjs493

sheramber said:

Working hours do not count for tax free childcare. It is  based on meeting the income criteria.

Once your older child is three you can get 15 hours free childcare regqrdless of  not earning a certian amount.

Under 3  you need to be inreceipt of qulaifying benefits  to get  15 hours free childcare

f I’m not eligible for the 30-hour offer, can I still get my 15 hours?

If your child is three or four and you don’t meet the criteria for the 30 hours, you will still be eligible for the 15-hour offer as this is universal.

If your child is two and you don’t meet the criteria for funded scheme for working families, then you will only be eligible for 15 hours if you are in receipt of certain benefits (listed above).

If your child is under two and you don’t meet the criteria for funded scheme for working families, then you will not be eligible for any funded care and education.

Full details can be read here https://www.eyalliance.org.uk/free-childcare-offers-what-parents-and-carers-need-know?gad_source=1

I earn in excess of the required amount. It’s just the ‘wrong’ type of income. I’ve been told it needs to be a salary income and my income streams of a widow’s pension, rental income, and a scholarship don’t count. 

I know there are exceptions for the self employed who don’t meet the minimum income thresholds but work at least X number of hours. My question was if this also applies to those running limited companies.