Tax Exemption

Childminders taking care of 3 or fewer children under the age of 18 may be entitled to avail of a tax exemption (called Childcare Services Relief) from the Revenue Commissioners if their annual Childminding income comes to no more than €15,000.

National Guidelines for Childminders Revised edition: Aug 2008

To qualify for the Tax exemption you need to meet the following criteria:-

• Your total income from Childminding does not exceed €15,000
• No deductions (Childminding Insurance, training, expenses etc,) can be made
• You mind no more than 3 children under the age of 18yrs in your own home
• You must register as a self employed person by filling in a TR1 form and make an annual return to the tax office

If a Childminder does not apply for the Childminders 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.

PRSI

When a Childminder applies for the exemption in their tax return, their names will be sent by Revenue to the Department of Social and Family Affairs. That Department will write to the Childminder requesting payment of a PRSI contribution of €253 or 4% of all income. This is their contribution towards such benefits as Old Age Contributory Pension, Maternity Benefit, Bereavement Grant etc