Nannies and tax credits

[FrussoHathor]

Does anyone know if the childcare element of tax credits will cover a nanny?

If they are registered with ofsted.

That's what I was thinking. Are nannies generally registered with ofsted?

Some are registered. However it will only cover a small portion usually ( well whatever you get)
For example:
So £200 per month tax credit

Nanny £500 net a week ( approx £620)

£2480 per month nanny gross salary

• £200 tax credit

= £2280 you still need to pay

Yes, if they are registered with Ofsted.

If you are on a very low wage you can get up to 70% of £300 paid (if you have 2 or more children).

What country are you in? Different procedures in Scotland, Wales, NI, England.

Advertise for a nanny who is already able to accept them (if in England then that means a nanny who is on the voluntary part of the Childcare Register. They will have a registration number).

WTC5 booklet from HMRC is worth a read. When calculating Childcare Cost for tax credits you can include Employers National Insurance.

England nannynick will see of I can get hold of that booklet.

WTC5 (pdf)

Requirements for Home Childcarers - Ofsted publication which gives info about what the nanny needs to meet in order to register as a Home Childcarer.