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Tax barrier to home carers

Childminders wanting to join the Government's 'home carer' scheme will be expected to give up their self-employed status and become employees of the parents whose children they care for, the Inland Revenue said last week, while parents who let them retain their self-employed status may face financial penalties for doing so. The move looks certain to further put off childminders from applying to join the scheme, which has had a very low take-up since its introduction last month. Ofsted said that in England only around 20 childminders have been accepted as home carers to date.

The move looks certain to further put off childminders from applying to join the scheme, which has had a very low take-up since its introduction last month. Ofsted said that in England only around 20 childminders have been accepted as home carers to date.

A National Childminding Association spokeswoman said, 'We feel that this new ruling could have implications for the success of the scheme. If we discover that childminders are put off from taking part in the scheme, we will of course let the Government know.'

A spokeswoman for the Inland Revenue said it was unable to make an exception for home carers, because 'the tax and national insurance rules which apply to the self-employed are intended to recognise the particular circumstances of people who are genuinely in business on their own account.

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