THE VAST majority of the State’s 37,000 childminders are not declaring their income to the Revenue Commissioners, new figures indicate.
Just 229, or a mere 0.6 per cent of all childminders, have opted to avail of a €15,000 tax exemption for minding children in the home, according to official figures released to The Irish Times.
The Government raised the exemption from €10,000 to €15,000 in recent years in the hope of attracting more people out of the black economy.
However, childminding groups say the low take-up is because many individuals fear being subjected to official scrutiny by health authorities. In addition, many worry they will lose money if they earn more than the tax exemption threshold.
Childminding Ireland, the main representative group, said it was disappointed that more people were not tax-compliant, although it said some may be declaring their income and not availing of the exemption.
“We do encourage people to declare their income and to be registered, because it’s good for their status,” said Childminding Ireland’s chief executive Patricia Murray.
“It’s important to remember that childminding has been a hidden part of the economy for a very long time, so we’re not surprised at the numbers . . . it also suits society to have it this way, to have cheap, accessible childcare available.”
Ms Murray said there was no obligation on the 1,000 members of Childminding Ireland to be tax-compliant.
“We’re only interested in children and the quality of care. Our members must have clearance from their GP to say they are suitable to care for children. I think the Revenue are well funded to police this sector.”
Childminding, despite being one of the most common forms of childcare in the Republic, is one of the most loosely regulated.
Individuals caring for fewer than four children in their own home are not subject to any regulation, mandatory training or Garda clearance.
Yet an estimated 70,000-80,000 children are placed with childminders every working day, making it the most popular form of childcare in the State.
This loose regulation stands in contrast to the UK, where all childminders’ homes are inspected regularly to ensure they are safe and suitable for young children.
Childminders must be insured, have first-aid training and be checked by the police – as must anyone aged over 16 who lives or works in a childminder’s home.
As well as induction training, many childminders undertake childcare qualifications or attend workshops on subjects like nutrition or business management.
However, authorities in Ireland are trying to encourage more people to register with the Health Service Executive as part of a drive to improve care standards and avail of training and tax exemptions.
To avail of the €15,000 tax exemption, childminders must notify their local county childcare committee that they are providing a childminding service.
Childminders in the State who take care of three or fewer children under the age of 18 are entitled to earn up to €15,000 tax-free, providing their annual childminding income does not rise above this level.