The Financial Benefits
Tax Relief on Childcare
Many of you may have read about the tax breaks that the Government introduced to assist with "approved" childcare, which includes nannies. If your nanny is registered with OFSTED you may be eligible for childcare vouchers or tax credits
Firstly, for families with a joint income of up to £58,175 (or £66,350 if there is a child under 1), childcare tax credit is available to assist with the cost of using an "approved" nanny as part of working tax credits. For further information on whether you qualify you can visit www.taxcredits.inlandrevenue.gov.uk
OFSTED
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Secondly if your employer gives you childcare vouchers, the first £55 per week per employee is now exempt from
tax and national insurance (and employer's national insurance) provided registered or approved childcare is used. If both parents receive childcare vouchers they are EACH entitled to receive £55 per week free of tax and national insurance. For a basic rate tax payer the tax and national insurance savings on £55 per week amount to £18.15 per week and for a higher rate tax payer the relief amounts to £22.55 per week. Childcare voucher schemes can be used as part of salary sacrifice scheme or given as an addition to salary.
A childcare voucher scheme can be set up quite easily by your employer but there are various criteria including the scheme being available to all employees. The Human Resources Department should have further details.
If you are a director of your own limited company and would be interested in setting up a childcare voucher scheme, you should consult with your accountant.
How to get your nanny approved?
Applications and renewals by nannies will be dealt with by Ofsted who will deal with the voluntary registration to the Ofsted Childcare Register (OCR).
Voluntary registration to the Ofsted Childcare Register - The registration requirements for this body are as follows:
- The applicant will need to demonstrate suitability.
- The applicant will be required to apply for a CRB check and have their identity checked at a local post office
- A certificate may be required where the applicant has lived abroad within three years of making the application.
- Ofsted will seek confirmation from applicants that they are not disqualified from providing childcare.
- The applicant will be required to hold a current first aid certificate
- Applications can be made in writing to Ofsted, National Business Unit, Royal Exchange Buildings, St Ann's Square, Manchester. M2 7LA, by phone on 08456 404040 or online on https://online.ofsted.gov.uk/OnlineOfsted/default.aspx
OFSTED charges a yearly fee of £135 for registration to the scheme. There may also be additional charges for:
· First certificate £150
· common core skills training £175
· Nanny insurance, Morton Michel
· Nanny insurance, The National Childminding Association
What if the nanny I want is not OFSTED registered?
Voluntary registration with OFSTED is a relatively new scheme and many nannies are not currently registered. If you find a nanny who is not OFSTED registered they will have to go through the registration process. All candidates are required to complete 
common core skills training, even if they already have a childcare qualification. This is because the common core skills training includes some modules not found in childcare courses, including (for example) multi agency working. They can either book into a CCS course or do the course via correspondence through MNT .
They also have to hold an accepted paediatrics first aid certificate and nanny insurance. Once the nanny has all of this information they can register on the scheme, pay, and the CRB will be applied for.
OFSTED registration is not particularly time consuming however it can take around 2 months to gather the required documents and for OFSTED to process the application and CRB. For many parents it is still worth the time and cost in savings.
Who should pay for OFSTED registration?
OFSTED registration is meant to enhance a nannies qualifications and professional standing so for this reason registration benefits the nanny as well as the parent. We recommend if you want to register your nanny with OFSTED that splitting the cost is a fair way to proceed. Any dedicated nanny should absorb the cost of a first aid certificate and nanny insurance if they do not already hold these, and the registration cost and CCS training could be covered by the family.
