Childminders want tax breaks for toys
It is understood that the Government intends providing significant tax exemptions for around 35,000 childminders in next month’s budget.
The changes are being planned after just 206 people in the State registered for the Government’s much-heralded €10,000 tax exemption announced in last year’s budget.
Most childminders were put off from applying for the tax exemption because it prevents them from writing off legitimately accrued expenses.
Only childminders minding one child full-time and one child part-time in their homes were actually better off after registering for the exemption.
Childminders were also initially precluded from making a PRSI contribution until both Childminding Ireland and the National Women’s Council persuaded Finance Minister, Brian Cowen, to allow them to make a voluntary contribution.
The childminders’ lobby group have also argued in their pre-budget submission that the current exemption should be based on a net income of €10,000 arrived at after necessary expenses in providing a childminding service are deducted.
Childminders who registered for the exemption since it was launched in January are not able to write off a proportion of the cost of providing the service.
Chief executive, Patricia Murray, said many childminders were better off writing off legitimate expenses as they were entitled to do as self-employed business people.
Childminding Ireland is also concerned that childminders who earned a single euro more than the €10,000 ceiling have to pay tax on the total amount.
Minister for Children, Brian Lenihan, has admitted that the scheme has not been a success.
Mr Lenihan, who agreed to have another look at the tax exemption in July, said he was involved in discussions on the issue with the Minister for Finance.
The organisation surveyed its own members last year and was glad to see that so many of them were tax compliant.
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