Self employed and 30 hours childcare

[wowmummy]

Hi all

Ok if I apply for the 30 hours childcare and predict I will earn £145+ a week (which I am earning well over at the moment) but say it suddenly drops what happens??

Anyone able to share an experience or advice?

Thanks ☺️

Bump

Just as with the tax-free childcare account, you have to reconfirm your eligibility every three (or four – I can't remember) months. For self-employment though, it's usually based on your overall yearly earnings, so whether or not you're eligible is more based on how much you expect to earn over the tax year.

It is every 3 months but obviously you can only predict with self employment so that is what is worrying me if everything went down the pan - touchwood it doesnt

Understandable – it's a lot of pressure to have to earn a certain amount to get childcare... so that you can work. Boggles the mind!

They average it out.. I'm self employed and made good use of the 30 hours free childcare for over a year. Some weeks my income drops below that but you don't need to report it if over a longer time period it'll average out to above the threshold.

Also if you’re new to self employment you don’t have to meet the earning thresholds for the first year.

I forgot to add that the little one will still be entitled to 15 hours regardless of your income/employment status. It's just the 30 hours that is income-reliant.

Also there is a grace period so that if circumstances change you get a few weeks leeway, it won’t suddenly stop overnight.

@Cupcakegirl13 jumping on this thread as I had a similar question. Just wondered if there is any threshold you have to meet during that first 12 months? I'm thinking of starting an Etsy business soon and obviously don't know if it'll be a success

@Emilyplays84 No, there's no minimum threshold for the first 12 months of business:

"If you’re self-employed and started your business less than 12 months ago, you can earn less and still be eligible for 30 hours free childcare."

www.gov.uk/30-hours-free-childcare

I'd expect you'd have to be working and registered with HMRC before you can apply for the free hours though (or starting work the day your child starts).

Hi sorry to bump old thread but does anyone know if same works for 15 hours?
Husband works full time, I've been stay at home mum for several years (first kid 5, second 1.5).
If I register my own business (eg photographer) then even if I don't earn anything we'd be eligible for the 15 hours for when our kid is 2 (term after birthday)

I am in a similar situation. My partner is self employed and only recently started. How does the 15 hours with self employment work? There isn't much help about this out there! Do you have to submit your earnings every 3 months so they can check you are earning? I no you don't do tax return until later in the year so its all confusing!

Xxxx

I assume you are talking about the new 15 hours for working parents of two year olds. If so yes that will be treated the same way as the 30 hour entitlement for self employed people. You don't need to meet the earnings threshold for the first 12 months after registering as self employed.

DragonFly98 do you know how the self employment side works? Do you have to let them know how much you plan on earning every 3 months? If so do you do this on HMRC website? Xxx

You register your yearly earnings once a year, when you fill out your SA tax form in April at the end of the tax year. (You actually have until the following January to do your tax form, but I personally find it easier to do it right away.)

In your childcare account you just reconfirm every three months that you’re still eligible – no extra checks of earnings on this side.

Many thanks. Where is the childcare account? Where can I find this to update it every 3 months? Xx

I don't currently get help with childcare costs so I don't have a childcare account. Is this something you have to do when applying for the 15 free hours?

Sorry for all questions am just finding it very confusing xx

Thank you for reply. So technically just register and done essentially. Do you know when the 12 months start being counted from? From date of incorporation or start of hours? Anything stopping someone closing first business down and opening second new one for new line of work / contracting? Many thanks!

I just confirmed I was still entitled every 3 months. The previous circumstance were highlighted and I ticked to say there was no changes. I used government gateway to update.

Yes, you will need to apply for a childcare account. You can use your government gateway login to do this (you will have got/will get the login ID when you register as self-employed): https://childcare-support.tax.service.gov.uk/par/app/trialmessage

The 12 months will be from start of incorporation, as there’s no way for HMRC to tell when your hours started. I don’t know about closing a business and starting a new one. It’s probably best to speak to a financial advisor or someone at HMRC about that.

@punjama sounds very much like fraud...

Am I right then thinking you have a childcare account which you open if government agree you qualify for 15 hours and give you code. This is the account you update to confirm your circumstances havent changed every 3 months. You then have your account which you register as self employed and update earnings, do tax return on etc? Both accounts are therefore separate? xx

Yes they are separate.