Childcare and recently self employed with no immediate proof of earnings

[workinglifeout]

We have a 2 year old who was eligible for the 15 hours childcare for term Apr -June 24. We had applied for it with selecting myself as self-employed because I lost my job in December 23, post which I have decided to start off on my own and am going through a qualification to start offering my services in Sept 24. So no income until later this year or early next year.
I have been submitting my returns via self assessment for the last 7 years and will be doing so for 23-24 the same way. My partner and I have a net adjusted income of less than 100K for year 23-24.

Our request was rejected and when we appealed, Chilcare services have just come back with the following statement:

We need further information to review our original decision dated 27 February 2024. To help us decide whether you are eligible for Tax Free Childcare and Free childcare for working parents we need to confirm that your partner is self-employed and expected to earn a profit of at least £722.45 per month for the three months following your application. To help us do that, we need further evidence to confirm your partner's self-employment and we will need you to send: Copies of your partner's latest three months invoices. Copies of your partner's personal bank statements showing wages going into the account. Proof of expenses. Next steps: Once we have received this information, we will look at your application again and let you know our decision. If we do not hear from you by 16 June 2024, we will make a decision based on the information we already have. If you need any further information, please contact the helpline on 0300 123 4097 and quote your National Insurance number. You can send the evidence requested by post to the address at the top of this letter or online at www.gov.uk/guidance/challenge-a-childcare-service-application-decision.^^ Using the link below How to ask for a review.

Since I have recently started off and dont have anything to show from an earnings perspective for both the above terms, I wanted to get feedback on how I should go back to Childcare services advising them of my situation and be eligible for 15 hours. I've heard of a 12 month grace period, but didnt see it on the offical website.

Thanks for your help.

Why have you been submitting self assessments for 7 years? Doesn't sound like you are newly self employed if you aren't earning? Students aren't eligible for funding or TFC so whilst you are studying you will have to wait.

If I'm honest it sounds like you're trying to play the system and have been caught out!

You also have to be earning the minimum amount stated to be eligible - if you're on £0 income, then you're not eligible

Sorry should have clarified. I have been doing self assessment because I was have additional income and SIPP contributions that I need to declare.

This link https://www.gov.uk/tax-free-childcare advises that the following:

If you’re self-employed and started your business less than 12 months ago, you can earn less and still be eligible for Tax-Free Childcare

If you're currently studying and not offering services until September then you're not currently self employed. You're a student . You won't be self employed until September as that's when your business is starting , so won't qualify for the funded hours until then.

Less, not nothing. This is to aid fledgling businesses get off the ground.

This is not you.

What if your planning on becoming self employed in June 2025 but does not work out and you can't until the following term, would you still be eligible for it in the term of April - July?

Well you need to be eligible by 31st March to get funding in the summer term so what you do in June is irrelevant.

No because last term it said are you planning on earning at least xyz in the next 3 months and that was it

Is it possible that they are considering you newly self employed due to your previous tax returns? So you e triggered a review?

You've declared to HMRC when applying for the funding code that you would be earning £186 per week in self employment income. You obviously had no intention of doing so. Be careful OP as HMRC could see this as fraud. You don't meet the criteria and have no proof of earnt income as you havent actually earnt anything. You aren't eligible and will not be able to renew your code.