Tax Exemption Scheme

Registering with Revenue

Childcare Services Relief

The Childcare Services Relief is available to childminders caring for 3 or less children in their own home:

https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-07/07-01-29.pdf

How to apply for the childcare services relief

Notify your service to your local City/County Childcare Committee.   You may receive a certificate/ letter of notification, this should be kept on file for future reference.

Register online with ROS or contact the local tax office for a form TR1 to register as a self- employed Childminder. (This form is also available to download on www.revenue.ie – go to forms and registration forms)

To ensure you avail of the tax exemption, you must submit an Income Tax Return form (Form 11) each year and claim the childcare services relief on the Tax Return. You will need to confirm that your service is notified and confirm your total childminding income for the year of claim is less than €15,000. Where a couple are being jointly assessed when submitting a Form 11 please ensure that the section being completed by the Childminder indicating exempted income includes the Childminder’s PPS number.

As a self-employed Childminder you will be required to pay Class S PRSI @ 4% (or a minimum €500) provided your income is €5,000 or more in a tax year and this payment will be a contribution towards your Class S benefits – Widow’s, Widower’s or Surviving Civil Partner’s (Contributory) Pension, Guardian’s Payment (Contributory), State Pension (Contributory), Maternity and Paternity Benefit, Job Seekers Benefit (self-employed), Adoptive Benefit, Treatment Benefit (Dental, Optical and Aural). Class S PRSI does not provide cover for any other schemes / benefits. PRSI due on certain tax-exempt income will be included in the Income Tax assessment for the relevant tax year. This means that €500 should be paid when filing the tax return. Failure to pay this could affect your State Pension entitlements.

You may mind up to 3 children (under 18 years) at any one time, excluding your own children. A Childminder could, conceivably, mind 3 children in the morning and 3 different children in the afternoon and still qualify.

Expenses That Can Be Offset Against Tax

As a Childminder all or a portion of the following expenses can be offset against income for taxation purposes:

Registration fee   To Tusla (full amount)

Membership   To relevant bodies e.g. Childminding Ireland (full amount)

Premises/charges   Rent   (not   mortgage),   repairs,   general   maintenance,   replacements   and refurbishment (portion)

Insurance  Specific childminding insurance, specific car insurance (full amount)

Telephone   Business specific phone (full amount), otherwise a portion

Equipment  Any   equipment   required   to   meet   statutory   regulations,   cots,   buggies, playpens, highchairs, stair gates, fire extinguishers/fire blankets, sterilisation equipment, toys etc. (full amount) Capital costs: written off at 12.5% per year

Services   Heating, light, cooking, phone – (portion)

Play materials  New books, arts & crafts materials, paper, paints etc (full amount)

Cleaning materials   Cleaning products, soaps, toiletries etc (portion)

Food   Portion of the household food costs

Furniture & Fittings   Repair, refurbishment, additional wear and tear (portion)

Transport   Mileage allowance (portion)

Training   Course fees, textbooks, training materials, travel, and subsistence (portion)

Marketing   Advertising costs (full amount)

Secretarial   Expenses involved in keeping records and accounts, computer equipment, stationery, and other office requirements (full amount)

Accounts   Book-keeping/accountants fees (full amount)

Staff   Payment to childcare assistant, contract cleaner, window cleaner, garden maintenance (full amount)

For further information please contact the following:

Department of Employment Affairs & Social Protection

Contact your Local Development Company Enterprise Officer

Contact the Case Officer in your local Social Welfare Office or Intreo Centre

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