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Nanny tax break for middle class excludes nannies

How parents employing a nanny will be able to claim tax breaks of up to £140 a week from next April.

In fact the papers seem to have been completely misinformed about what the Government is actually doing to help working parents pay for nannies. Stories stated that the Department of Education had confirmed plans to give up to £140 in tax credits to certain parents employing a registered child carer would be extended to all working parents earning up to £50,000 a year.

In fact the papers seem to have been completely misinformed about what the Government is actually doing to help working parents pay for nannies. Stories stated that the Department of Education had confirmed plans to give up to £140 in tax credits to certain parents employing a registered child carer would be extended to all working parents earning up to £50,000 a year.

In fact the tax breaks have been designed to exclude nannies – a fact that had the entire nanny mafia up in arms!

For a family employing a fully qualified nanny to benefit from the tax breaks, the nanny would have to retrain and qualify as a childminder, a process that would mean swapping 2 full years of training for a 16-week course. Fully qualified nannies represent up to 30% of the overall childcare market and 61% of working parents use nannies and childcare in the home.

Ben Black, a director of Tinies Childcare the UK’s leading childcare agency said “This appears to be bureaucracy gone mad, however there is some good news. The Government is tentatively talking about creating a national register of nannies which would allow the tax breaks announced today to actually become available to working parents employing a nanny.”

Black went on to say “We as a company are advising the Government on its plans, the right noises are certainly being made however nothing concrete has been done yet.” 

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