This Content Was Last Updated on April 5, 2023 by Jessica Garbett
Child care costs are a major expense for many people.
There are various Government assistance schemes:
- Childcare Voucher schemes are now closed to new entrants
- Free Childcare for younger children (3 or4 years old, some 2 year olds) at 15 hours a week or 30 hours a week depending on employment status – visit Childcare Choices for information – a phased expansion of this programme was announced in the Spring 2023 budget principally to extend 30 hours a week childcare to for children as young as 9 months.
- Tax subsidised childcare for older children (up to age 11) via a ChildCare Account (You pay in £8, Government £2) – visit Childcare Choices for information
- Childcare via Tax Credits or Universal Credit
Childcare as a Business Expense
Unfortunately childcare is not a deductible expense for the Self Employed – Sole Traders and Partners.
From October 2018, Employers, including Company Directors, can no long provide new tax deductible Childcare Voucher Schemes or enter into new Directly Contracted Childcare Schemes – parents in these schemes already can continue. This restricts the ability of a Company Director to deduct childcare costs in a similar way to the Self Employed.
Properly run Workplace Nurseries still attract tax exemption within larger businesses.