Financial support for self-employed Childminders announced by the chancellor
What help is on offer for childminders?
The chancellor has announced a financial support package for self-employed individuals and specifically mentioned childminders in his speech.
The Self-employment Income Support Scheme is worth up to £2500 per month, backdated to 1st March 2020 and will be paid in one lump sum in June 2020.
The taxable grant pays 80% of average monthly net profits, up to £2500 per month, over the last 3 years and qualifying individuals will automatically be contacted by HMRC shortly with a form that needs to be completed to apply.
You must have filed a self-assessment tax return in January 2020 to qualify and if you have been late in filing, then the chancellor has granted 4 weeks from today to submit your January 2020 return.
Self-employed workers can obtain the grant AND continue to work which means childminders can obtain the grant and continue to work within government guidelines which state they can continue to care for the children of key worker parents and vulnerable children.
If you are in hardship and can't wait until June 2020 then the self-employed can apply for Universal Credits.
Is this good news for childminders?
Overall, not bad. Childminders will receive 80% of their average monthly profits from the government and can continue to work, unlike the Coronavirus Job Retention Scheme for employed workers which pays 80% of monthly salaries whilst the employee is furloughed and unable to work.
I'm a new childminder. Will I qualify?
You must have filed a tax return in January 2020 to qualify which means you must have been self-employed for all, or some, of the period 6th April 2018 to 5th April 2019.
How do I apply?
The chancellor stated that HMRC will automatically contact qualifying individuals so you do not need to do anything further at this stage.
Is there any additional support for childminders?
Yes. The government has announced further help for childminders including stating that they are able to continue to receive early years funding, 3 month mortgage holidays from lenders, the deferral of July 2020 self-assessment income tax until 31st January 2021 and interest free loans for 12 months under the Coronavirus Business Interruption Loan Scheme. We have further details on this and other information and support on our Coronavirus & Childminders FAQ page.
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