What is Childcare Services Relief?
The Childcare Services Relief provides an exemption from income tax to taxpayers who provide childminding services in their own home.
Covid-19 Temporary Measure Introduced
Due to Covid-19, this has now been temporary amended due to the stay at home measures. Childminding should now only take place in the child’s home and therefore an individual minding children in the children’s own home will still qualify for the Childcare Service Relief. The childcare must be provided in accordance with official guidance, specifically, childcare is allowed in the home of the child for the children of essential workers. This temporary measure will be reviewed once further guidance is available from the HSE.
Nature of Services that qualify
To qualify for the relief, an individual provides any form of childminding services to children under 18 years of age, on a full or part time basis and are provided to 3 children or less.
Childminding activity must not exceed €15,000 within the tax year in order for the exemption to apply for Income Tax and USC. However, PRSI is chargeable on this income.
How do I claim?
Tax relief must be claimed through your tax return for the relevant tax year before the tax return deadline.
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