Q: I am self employed. Can I claim my childcare cost of part of it and off set it as part of my expenses as I cannot run my business with out the childcare?
Jan 01 2006
Answered by: Clive Lewis Ask a question
You are not allowed to include the cost of child care in your expenses in calculating your Income Tax and National Insurance liability.
However you are likely to be eligible for Working Tax Credit which is available to employees and the self employed who (a) usually do 16 hours or more paid work a week, and who are aged 16 or over and either are responsible for one or more children or are disabled, or are (b) aged 25 or over and usually work at least 30 hours a week. If you have a partner and you both satisfy the conditions, there is only one credit and you must decide which of you receive it. The Working Tax Credit may be increased by a childcare element for working claimants. The claimant must work at least 16 hours per week. The childcare element amounts to 70% of eligible costs up to £175 per week for one child and up to £300 per week for two or more children. The childcare element will increase to 80% from April 2006. Contact your local Tax District if you believe you are not receiving these benefits or to check whether you are receiving the correct level of benefits.
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