The scheme for Childminding
relief was announced by the Minister for Finance, Brian Cowen, T.D. in the Budget
2006. The scheme will exempt from taxation the Childminding income of an individual
who, subject to certain conditions, minds up to three children in his or her
home, subject to a maximum income from Childminding of €10,000 per annum.
The Minister for Social and Family Affairs, Seamus Brennan, T.D. made the following
statement on Tuesday, 21st February, in relation to PRSI contributions:
"To ensure that all of those who participate in this scheme are afforded
the opportunity to build up a social insurance record which can, in turn and
in time, have important advantages for benefits such as pensions and Maternity
Benefit, this Bill will require that an annual PRSI contribution at a rate of
€253 is made in respect of this childminding income. This is in keeping
with the Government's recognised policies of making every effort to encourage
the extension of pension coverage, particularly to women who have emerged as
especially vulnerable because of their lack of any, or adequate, pensions".
In effect, Childminders who pay the €253 per annum will qualify for certain
pensions, Maternity and Adoptive Benefit, Orphan's Contributory Allowance and
Bereavement Grant.
Further details of the Childminding Relief Scheme will follow in the next edition
of our Newsletter.