Childcare and tax credits

[cousinsandra]

Hello. Does anyone know if it is possible to claim childcare tax credits for childcare done from your own home, ie an au pair or childminder who comes to you. I currently use a childminder who has the children at her house and has gone through the extensive registration, but due to (my) new single status and irregular shift patterns I am looking into other options. Does anyone have any information on this? I have checked the tax credits website and asked them on the phone but they don't know. I also can't get the local council to return my call! Is it top secret, or can I register someone without them having a home to inspect?

Would appreciate any information or links, etc.. Thanks!

A childminder, by definition, works from her own home, and is self-employed. Working in yours, she'd be a nanny and you'd be her employer, with all of the responsibilities that brings (holiday pay, sick pay, maternity leave, redundancy etc). I think you can get childcare credits if your nanny is registered with OFSTED as a nanny; don't think a childminder could transfer it, and I don't think an au pair would cut the mustard either.

But my DC are well past needing care, and there was no help towards childcare when they did, so I'm a long way from an expert and really only regurgitating what I've read here. Someone else more knowledgeable will, I hope, be along soon.

Au pairs are not covered by tax credits, if you can find a nanny that is registered with Ofsted (many arent) then you could claim then.

WTC2 and WTC5 leaflets explain how the childcare element of tax credits works.

It CAN be used for a Registered Nanny in England.

However a nanny is your Employee and thus would be entitled to at least National Minimum Wage, though in many areas they will expect a lot more salary than that. You also have other costs associated with that type of childcare... see my post on Sat 05-Dec-09 11:29:55 - Example Costs of employing a nanny.

Thanks for your replies. I live in Wales so things seem to be slightly different - I have just found out that there is a Childcare Approval Scheme which has a registration system which seems good.

Thanks so much for your help anyway - I can't believe how difficult it is to find this info out on official sites!

Info in Wales does seem to be a bit lacking, my younger sister lives in Wales so I hear from time to time about the trouble she has.

I expect you have already found this website... it seems to be the main site you need for the Childcare Approval Scheme (Wales)

wales.gov.uk says that there may be changes to the scheme from April 2011.

Once your nanny is registered on the scheme, then the WTC2 and WTC5 documents would apply with regard to how much help you may get via Tax Credits.

You are extremely helpful, thankyou! I am going to cross examine all the childminders at playgroup this week and see if they have inside information!

Thanks again.