Childminders Tax Exemption

If you are a childminder you can avail of a tax exemption on this childminding income.  Below is some of the criteria for the exemption:

Details of the Scheme

  • You must be registered as Self-Employed for tax purposes.
  • The childminding service must be provided in the your own home
  • You may care for up to 3 children (up to 18yrs of age) at any one time, excluding the childminders own children.  You could, conceivably, mind 3 children in the mornings and 3 different children in the afternoon and still qualify.
  • The gross annual income from the childminding must not exceed the limit, which is currently set at €15,000 per annum.  You could have an 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 contact your local City/County Childcare Committee to notify them of the existence of your service.
  • 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 Protection. 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.

Please contact Tracey Nelson for further information.