If you are a childminder you can avail of a tax exemption on this childminding income. Below are some criteria for the exemption:
Details of the Scheme
- You must be registered to the Tax Office as Self-Employed
- The childminding service must be provided in your own home
- You may care for up to 3 children at any one time, excluding the childminders own children. You could, conceivably, mind 3 children in the morning and 3 different children in the afternoon to quality
- The gross annual income for the childminding must not exceed the limit, which is currently set at €15,000 per annum. You could have any income from another source, and still avail of the exemption on their childminding income.
- You must submit an annual return each year, and you must elect for the relief.
- You must be notified to Fingal County Childcare Committee
- The income to which this tax relief applies remains liable for PRSI. Since childminders are self-employed there is no employer who can deduct the PRSI. When a person makes the election for the relief in their tax return, their names will be sent by Revenue to the Department of Social and Family Affairs. That Department will write to the people requesting payment of a flat rate of PRSI for the year, currently €500
If a childminder does not apply for the Childminders Tax Exemption, or is earning over the current €15,000 gross threshold per annum, then the income is fully taxable. However, there is an entitlement to deduct a variety of expenses, which may be incurred whilst earning the income before tax is applied, i.e. toys, equipment, food etc.
Childcare Services Relief: http://www.revenue.ie/en/tax/it/reliefs/childcare-relief.html