Childcare Services Income Exempt From Tax

Q. I provide childcare services and had heard that this income is exempt from tax. Is this correct and do I have to file a tax return?

20th October 2017

A. If you provide childminding services in your own home, you may claim childcare services relief each year. This relief provides an exemption from Income Tax for certain childcare income.

In order to qualify you must:

  • not receive more than €15,000 income per annum
  • provide the service in your own home
  • not mind more than three children at any one time
  • be self-employed
  • show you have notified the Health Services Executive (HSE) that you have, will be, or are providing childcare services

All the criteria must be satisfied to qualify for the exemption.

In order to claim the relief, you must register for Income Tax and file a tax return each year.

While this relief exempts you from income tax you should note that you may still have a liability to PRSI which would need to be paid prior to the income tax deadline.

Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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Call us today to make an appointment at your local office

1890 98 76 09

Or submit an enquiry