About childcare tax relief
Child care tax relief works by increasing your tax exemption threshold.
You must be making payments to a registered child care provider, for looking after your qualifying child if they are aged 12 or under.
Child care providers include:
- family child carers
- day nurseries, including states-provided nursery schools
- accredited nannies
If you need help completing the childcare relief section on your tax return watch our help video.
Filling out your personal tax form
Who can claim
You will receive the increase to your exemption threshold for paying child care if you are entitled to the child allowance exemption and are:
- a married couple who are both working, each with earnings of more than £4,500
- in a civil partnership who are both working, each with earnings of more than £4,500
- a married couple where one of the spouses is not working due to severe illness or disability
- in a civil partnership and one of the partners is not working due to severe illness or disability
- an employed single mother with earnings of more than £4,500
- an employed single father with earnings of more than £4,500
- a person in a co-habiting relationship paying for the child care with earnings of more than £4,500
Amount of child care tax relief
Enhanced child care relief
You can claim enhanced childcare tax relief for each year of assessment up to and including the year in which your child is entitled to support in respect of early years education.
Standard child care relief
If your child is over the age of 4 before 31 August in the year of assessment and aged 12 or under, the standard increase for child care will apply.
| 2015 | 12,000 | 6,150 |
| 2016 | 14,000 | 6,150 |
| 2017 | 16,000 | 6,150 |
'Second earner' calculation
If you are married or in a civil partnership, the relief is calculated on the earnings of the 'lower earner' and their earnings must exceed £4,500.
Example 1: husband and wife both working with earnings of £25,000 each, child care fees paid £10,000
Joint income Less Married exemption Second earner's deduction Child allowance Total deductions Taxable income | £50,000
(£23,000)
(£4,500)
(£3,000) (£30,500) £19,500 | Joint Income Less Married exemption Second earner's deduction Child allowance
Child care tax relief Total deductions Taxable income | £50,000
(£23,000) (£4,500) (£3,000)
(£10,000) (£40,500) £9,500 |
Marginal relief rate 26% | Tax = £5,070 | Marginal relief rate 26% | Tax = £2,470 |
Example 2: husband and wife both working, spouse A has earnings of £10,000, spouse B has earnings of £40,000, child care fees paid £10,000
Joint income Less Married exemption Second earner's deduction Child allowance Total deductions Taxable income | £50,000 (£23,000) (£4,500) (£3,000) (£30,500) £19,500 | Joint income Less Married exemption Second earner's deduction Child allowance
Child care tax relief Total deductions Taxable income
| £50,000
(£23,000) (£4,500) (£3,000)
(£5,500)*
(£36,000)
£14,000 |
| Marginal relief rate 26% | Tax = £5,070 | Marginal relief rate 26% | Tax = £3,640 |
| Pays 10.14% tax on their total income for the year | Pays 7.28% tax on their total income for the year |
How you claim
Your tax return includes a section for claiming childcare tax relief.
As evidence of the payments made, you will need to get a certificate from the person or establishment concerned for each child in care. This will confirm:
- the child care provider's name
- the child care provider's registration number (if applicable)
- the child's name
- the child's date of birth
- your name
- the total payments you have made for child care in the year
When you send in your completed tax return, enclose the completed certificate(s).
Child care relief certificate (for completion by child care providers only)
Checking if your childcare provider is registered
Family child carers and day nurseries are registered by the Education, Sport and Culture Department.
Childcare information
Nannies are accredited by the Jersey Child Care Trust.
For more information about nanny accreditation, visit the Jersey Child Care Trust website.
Childcare certificate calculator
If you're an accredited nanny you can use the calculator below to correctly complete childcare certificates in accordance with the law. Advice and assistance is also available from the Jersey Child Care Trust.
Calculator to produce child care certificates (accredited nannies only)
Other support for childcare
You may qualify for help towards the cost of child care from income support. Payments made by income support for child care can not be claimed as a deduction for tax.
Income support rates
Child care relief up to 2015
When child care relief was introduced, if you were married the relief was only available against your wife's earnings. This was changed in the 2016 budget to calculate the relief on the 'second earner's' income.
2016 budget tax summary
gov.je