Childminders Tax Exemption

Childminders who have notified their local City/County Childcare Committee can avail of the Childminders Tax Exemption on their income from childminding.

Details of the Scheme

The exemption applies only to Childminders who are registered with the tax office as self employed
The childminding service must be provided in the Childminders own home.
The Childminder may mind up to 3 children (under 18 years) at any one time excluding the Childminders own children. A Childminder could conceivably mind 3 children in the mornings and 3 different in the afternoon and still qualify.
The gross annual income from childminding must not exceed the limit (currently €15,000). A childminder could conceivably have an income from another source, and still avail of the exemption for their childminding income did not exceed the limit.
If 2 people are minding children in the same premises, the limit is split between them. Each childminder would not be entitled to €15,000.
A Childminder wishing to avail of the Childminders Tax Exemption must notify their service to their local City/County Childcare Committee. They will receive a letter stating they have notified their service to the Committee. This letter should be kept on file by the Childminder for future reference.
A Childminder must submit an Income Tax Return each year, even if there is no tax liability.
When a Childminder applies for the exemption 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 Childminder requesting payment of a flat rate of PRSI for the year, currently €253. This is their contribution towards such benefits as Old Age Contributory Pension, Maternity Benefit, Bereavement Grant etc
If a Childminder does not apply for the Childminders Tax exemption or is earning over €15,000 gross per annum, then their income is fully taxable. However, a Childminder is entitled to deduct a variety of expenses which they may have incurred in earning that income before tax is applied, i.e. toys, equipment, food etc. specifically for the children being minded.

For further information please contact Childminding Advisory Officer cmao@roscommonchildcare.ie phone 094 9622540.

Universal Social Charge

Childminders Tax Exemption

Details of the Scheme