Tax Exemption

Childminders taking care of 3 or fewer children under the age of 18, may be entitled to avail of the Childcare Services Relief from the Revenue Commissioners, provided their annual childminding income comes to no more than €15,000.

To apply for the Childcare Services Relief, childminders are obliged to make an annual tax return of their childminding income to the Revenue Commissioners and must also provide evidence that they have notified their local City or County Childcare Committee. The details of the scheme are as follows:

• The exemption applies only to childminders who are self-employed
• The childminding service must be provided in the childminder’s own home
• The childminder may mind up to 3 children (under 18 years) at any one time, excluding the childminder’s own children. A childminder could, conceivably, mind 3 children in the morning and 3 different children in the afternoon and still qualify.
• The gross annual income from childminding cannot exceed the limit (currently €15,000).
• A childminder must submit an income tax return each year, even if there is no tax liability.
• A childminder will be required to pay a flat rate of PRSI for the year, currently €500. This is their contribution towards such benefits as Old Age Contributory Pension, Maternity Benefit.

For information on Applying for the Tax Exemption please refer to the Revenue.

If a Childminder does not apply for the 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.