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Childminders reminded of their tax obligations by Revenue

Posted by SchoolDays Newshound on 08/03/2014. Childminders reminded of their tax obligations by RevenueTags: Parenting

On Thursday last, Revenue issued an e-brief which reiterated to childminders that they must declare their income even if earnings are below the tax threshold or they are entitled to an exemption. Childminders who earn less than €15,000 a year are exempt from paying tax - but it's understood they will now be obliged to fill in a 26 page tax return form for the first time.

According to Christine Keily, senior tax consultant with who is quoted in the Irish Examiner “in order for the relief to apply, the childminder is required to notify the local city or county Childcare Committee that the services are being provided on or before the filing date for the tax return for the relevant year. In addition, in order to avail of this relief the individual must elect to claim the relief. This relief is made via submission of a tax return.”

Many commentators feel that the fact that Revenue issued this reminder would suggest that they intend to clamp down on childminders and it's understood these new rules will even apply to grandparents who are paid to mind their grandchildren at home. It has also emerged that people minding children in their homes may be unaware that they are due to make pay related social insurance (PRSI) payments on the money they get for caring for children.

Minister Joan Burton has said on Newstalk today that it's in the best interests of children if all childminders are fully trained and accountable. According to the Independent a spokeswoman for Revenue has said that just 450 people were claiming a tax exemption for minding children in their home, but it is thought that thousands more are looking after children without telling the authorities.

However, there is concern that the new rule could result in headaches for parents who find fewer people in there area willing to mind their children as some childminders will be less inclined to register themselves for any regulation in order to avoid the extra red tape.


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