Childcare Tax Credits if you have a nanny rather thatn nursery/childminder

[GillW]

Announced this weekend - the range of childcare options for which the costs can be counted for the purposes of claiming the childcare tax credit (for families with a joint income below £43,500 next year) has been increased to include nannies, after-school and holiday clubs, and childminders working in your own home, from next April. But it isn't going to cover grandparents/relatives unless they register as a childminder or nanny. Details here .

The inclusion of these categories of childcare is is going to apply to the employer-supported childcare scheme (childcare vouchers too) - which seems to have thoroughly confused the Telegraph who have got the two schemes muddled, to say the least. Their article reads that everyone is to get £50/week tax free. Not true unfortunately - it's only those whose employers are paying them via nursery vouchers, but that scheme isn't limited to a joint income of £43500 as the Torygraph say.

The Independent has it wrong too - you won't be able to claim anything for a nanny if you have an income of "up to £58000" - that's the limit for the flat-rate child tax credit, not the childcare element.

GillW, do you know if you can claim it for au-pairs? I'm sure someone mentioned it on the news, but it was ambiguous.

The full consultation, rather than the media-garbled versions, can be found here . It does specifically exclude relatives becoming registered as 'nannies' - "where the approved carer is caring for children to whom they are related in the child?s own home, this would not be eligible for tax credits or other support", although it does appear to leave the way open for relatives to register as childminders (but more regulation/inspections that way of course).

Meanbean - I think you'd be ok with an au-pair, although it might take a bit of time and effort to comply with the 3 criteria:

? They have to show that there is nothing in their background that makes them unsuitable to care for children. In the vast majority of cases this would be achieved through obtaining an enhanced disclosure from the Criminal Records Bureau (CRB);

This will be different for foreign au pairs obviously, so you would need to allow time for it to be complied with.

? They have to show that they have some understanding of working with children. Many carers will already have childcare qualifications but as a minimum we would expect approved carers to have attended an induction course covering providing childcare in a domestic environment. We will provide guidance on the content of the induction course with variants according to the role of the carer;

A qualified/experienced au pair will probably be ok, otherwise the need to attend an induction course - (how long?, how often will the run?) - could delay the meeting of the criteria.

? At the time of application for approval they must have a valid first aid certificate relevant to the care of children. This would help to ensure that an approved carer would be well prepared to deal with any accidents that might arise.

A non UK certificate will presumably be equally acceptable? Adds another requirement though if your au pair doesn't already have one.

So I think the answer is that in principle au pairs are covered - but in practice a registering short-term au pair might be more hassle than it's worth.

Bugger that's a bit too late for us we have just gor rid of our nanny!! Partly because we just couldn't afford her.