Self assessment and childcare

[fuzzywigsmum]

Hello,

I'm just filling in my self-assessment as I had a brief period of freelancing last year.

I just wanted to check whether other self-employed mums include childcare costs as an allowable expense. It seems pretty clear to me that childcare should come off the profit of my business when i was a sole trader but the bloke I just spoke to at HMRC said he was unsure but didn't think it would count! Surely childcare should be a legitimate business cost as I couldn't have done the work without it?

Help please!

It isn't tax deductible as far as I know. It is something that feels unfair but is the case.

I've been self employed for 20+ years and have used an accountant for submitting my tax return for several years. At no point have i been advised that childcare is tax deductable.

I think the only way you could do it would be if you could issue yourself with childcare vouchers in the same way that a large employer would. That would be more tax efficient.

Unfair! That's bonkers!

I have this vague feeling that chauffeurs are tax deductible.

I suppose with childcare that you might be able to get childcare tax credits (I can't as I don't pay enough for childcare - my work is seasonal and so I don't need it all the time).

But thanks both for advice.

You can't deduct it from your tax if you're employed though, so why should you be able to do it if you're self-employed? iirc and I may be wrong, you can buy childcare vouchers if you are self-employed which will give you some tax benefit.

I am having o employ an au pair to continue to work (long story). I had a discussion with my accountant about if I ran my own payroll or put her through the business. My accountant said it was fun to run her on the company payroll, but all the costs including employers NI must go against my drawings as childcare is not a legitimate expense.

I am aghast that someone advised you at HMRC that they weren't sure. Its no wonder people get it wrong at times when even the unhelpful lines don't get such basics correct