ofsted registration fee and tax

[tiggersreturn]

Does anyone know if this is tax deductible as an employer?

I am guessing you mean, as an employer of a nanny, if you as the employer pay the nannies Ofsted registration fee, is that fee recoverable in anyway.

That is what I mean.

There are 3 scenarios here

1. you are a parent whose nanny is registered. That allows you to pay her with c/vouchers and you pay her fee Not sure how you deduct from taxes An accountant would be useful here

1. you are the agency and pay the nanny fee. That I would say is tax deductable as a nanny agency would consider that an allowable expense?

1. you are a c/minder and employ a nanny + pay her registration fee In this instance I would say it is tax deductable as, again, it is an expense

My interpretation on all scenarios...

Do you claim tax credits? That may affect the answer as the registration fee may be a valid cost of emplpying a nanny as far as a tax credits claim is concerned.

I would imagine that the cost is not recoverable as what would you claim it against, Employers NI? I'm not an accountant, maybe one will post later/few days.

No you cannot claim it back. In fact you are on slightly dodgy ground not declaring it as remuneration for the nanny and putting it through her payslip so that she pays tax and NI on it. A number of nanny payroll agencies advise you to do exactly that, although personally (and professionally) I would say that as long as the contract of employment requires her to be registered there is a counter-argument.

Thanks. I do not get tax credits but use childcare vouchers. I passed it to my agency and no such suggestion was made. I don't quite understand why she'd have to do that. I'm a solicitor and the cost of my practicing certificate is paid by my employer and not repaid by me. If I leave part way through the year there's an issue over next employer recouping cost but I've never seen it treated as a benefit and that's the closest equivalent to this.

There is a specific exemption for membership fees of many professional bodies including solicitors'. Ofsted is not a professional body so exemption must be claimed under other provisions.