Childcare as a Business Expense?

[nannynick]

I think this has been discussed in the past but I can't find it in the archive (admittedly I only did a brief search).

There is a ePetition created by a small business owner who is trying to have childcare as being seen as a legitimate business expense.

Will it ever be a legitimate business expense? Should it be? If it were to become approved as an expense, then it would have to be for all business wouldn't it... thus also individuals who are self employed?

Could it work... would government ever consider it? Views anyone.

I think it would create parity with employed people if childcare costs up to £245 could be disallowed for tax purposes for self-employed people, this would bring it into line with employed people who can salary sacrifice that amount already. As such I think a good argument could be built now that this is discriminatory to self-employed people.

I'd struggle to single out small businesses as a beneficiary of childcare deductions. Personally, I think a hell of a lot more should be done to help make childcare more affordable for everyone. Numerous friends have not gone back to work because the salary they would earn having paid for childcare out of their post tax income would hardly cover the cost of the cornflakes and their travelcard.

Given that we're creating jobs, more should be done to keep us in work and our nannies in work. In addition, I think the tax take would be higher ironically, if a greater amount of childcare was tax deductible/paid out of pre tax income - fewer would be tempted to pay cash which, let's face it, lots of people do (and before you ask, I'm not one of them!)