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HMRC internal manual

Tax Credits Manual

HM Revenue & Customs
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Eligibility - childcare element (WTC): childcare provided in child's home - England (Info)

Childcare provided to a child in their own home is treated as relevant childcare for the purposes of the childcare element of Working Tax Credit (WTC) provided that the care provider is approved to supply the care in the child’s home.

Approval for the provision of childcare in the home of a customer is given to a childcare provider by the Chief Inspector of Schools in England (Ofsted) or a childminder agency who is registered with Ofsted.

A person can only be approved as a childcare provider in accordance with the Tax Credits (Approval of Home Care Providers) Scheme 2003, if they are approved by the Chief Inspector, for the provision of relevant childcare.

Once a person is approved to provide home childcare, the approval is only considered to be ceased if the approval is withdrawn by the Chief Inspector.

The Chief Inspector will maintain a list of approved childcare providers, approved under the scheme.

An approved home care provider must be registered for childminding under section 79F(1) of the Children Act 1989.

Note: Where the care provided is in the child’s home, the provider’s registration with Ofsted or the childminder agency must be renewed every year. Where a childcare provider’s approval with Ofsted or the childminder agency is withdrawn or lapses after the year, they are no longer treated as providing relevant childcare. It’s for the customer to ensure that their childcare provider is properly registered and remains registered throughout the year. The registration fee is to be included in the eligible childcare costs when claimed by the customer.