Childminder tax changes from April 2012
Most childminders working in the UK are affected by changes to Income Tax and National Insurance. In his Autumn Statement on 29 November 2011, George Osborne announced the changes that will take effect from April 2012.
Here are the changes that will affect most childminders*:
- Class 2 National Insurance goes up by 15p to £2.65 a week.
- The personal allowance goes up by £630 to £8,105 a year.
- The start point for Class 4 National Insurance goes up by £380 to £7,605 a year.
So most childminders will pay an extra £7.80 over the year in Class 2 contributions, but the tax bill to be settled in January 2014 will be £160 less than it would otherwise have been to leave them £152 better off. Most employees fare very slightly better with a £170 a year reduction in tax and national insurance.
Childminders assistants will benefit in the same way as nannies and other employees, with a saving of up to £57 a year in Employer’s National Insurance for their employer.
Based on information published as at 29 November 2011 – errors and omissions excepted.