Can I claim childcare as a self-employed tradesperson?

No. Childcare is a private cost, not a business expense. In 2026-27 you can use Tax-Free Childcare instead: the government adds £2 for every £8 you pay in, up to £2,000 per child a year.

Many tradespeople only get on site because a nursery has the kids, so it feels like a work cost. The rules below follow GOV.UK and HM Revenue and Customs' Business Income Manual (BIM), checked on 17 October 2026.

Why childcare is not a business expense

Section 34 of the Income Tax (Trading and Other Income) Act 2005 only lets you deduct a cost that is incurred wholly and exclusively for your trade. HMRC's manual (BIM37007) says that if there is any non-business reason as well, the cost fails, and there is no rule that allows a business share of a cost with two purposes.

The manual (BIM37900) adds that some spending has a private purpose built in, so it is always disallowed. Its list includes food for sustenance, having somewhere to live and "helping one's nearest and dearest". HMRC's manual has no separate page on childcare, but in our reading paying for your own children's care sits squarely in that last group: the need comes from being a parent, not from being a plasterer.

Paying a family member does not change this

Paying your partner or a grandparent to mind the kids is still childcare. HMRC's manual (BIM37735) says wages to a relative are only allowed when paid wholly and exclusively for the business. Looking after your children is not work for your business. Real work for the business, such as doing your invoices, is different, and our guide on paying your partner a wage covers it.

Tax-Free Childcare: what you get

Tax-Free Childcare is an online account that you and the government both pay into. GOV.UK says:

• for every £8 you pay in, the government adds £2
• the top-up is up to £500 every 3 months for each child, which is £2,000 a year
• for a disabled child it is up to £1,000 every 3 months, which is £4,000 a year
• your child must be 11 or younger (16 or younger if disabled), and your provider must be registered and signed up to the scheme
• you must sign in every 3 months to confirm you are still eligible, or the payments stop

Do you qualify if you are self-employed?

Yes, you can be employed or self-employed. You, and your partner if you have one, must each expect to earn at least a set amount over the next 3 months. GOV.UK says this is the National Minimum Wage or Living Wage for 16 hours a week. The National Living Wage for those aged 21 and over is £12.71 an hour from April 2026, so:

Three rules help the self-employed:

1. If you do not expect to earn enough in the next 3 months, you can use an average of what you expect to earn over the current tax year. For someone aged 21 or over, GOV.UK's example is £10,574.72 a year.
2. If you started your business less than 12 months ago, it does not matter how little you earn.
3. If you are also employed, you can count both, or use just your self-employed income if that is what gets you over the line.

You cannot get it if your expected adjusted net income, or your partner's, is over £100,000 for the current tax year. Adjusted net income is your total taxable income, including self-employed profits, less certain reliefs such as trading losses, pension contributions and grossed-up Gift Aid donations.

Free hours in England

Free Childcare for Working Parents gives 30 hours a week for 38 weeks of the year for children aged 9 months to 4 years in England. It uses the same earnings test, the same start-up rule for new businesses, the same £100,000 limit and the same 3-monthly check. Separately, every child aged 3 to 4 in England can get 15 hours a week for 38 weeks, whether or not you work. For a 3 or 4 year old, the working parents scheme means 30 hours in total. Scotland, Wales and Northern Ireland run their own schemes. One application covers both the free hours and Tax-Free Childcare.

Universal Credit childcare

If you claim Universal Credit, you can claim back up to 85% of registered childcare costs while you are working (if you live with a partner, you both need to work unless one of you cannot because of a disability or health condition). GOV.UK's current monthly maximum is £1,071.09 for one child and £1,836.16 for two or more. You cannot get Tax-Free Childcare at the same time as claiming Universal Credit, so compare the two before switching. Our guide on Universal Credit when you are self-employed explains how your earnings are counted.

A worked example

An electrician aged 34 has one child at nursery. She has traded for 5 years and expects to earn well over £2,643.68 in the next 3 months.

On the bigger bill, the top-up stops at £500 once £2,500 is covered, so she pays the last £500 herself. Put through the business, the bill would be disallowed. This is an example only.

What this means for you

Keep childcare out of your business records, including money you give a relative for minding the kids. Tax-Free Childcare is the help the rules give you, and in England the free hours sit alongside it. In our reading, a quiet quarter is when the yearly average matters.

Steps to get help with childcare costs

1. Check your provider is registered and signed up to Tax-Free Childcare.
2. Work out your expected earnings for the next 3 months, or your average over the tax year.
3. Have your National Insurance number and Unique Taxpayer Reference ready.
4. Apply once on GOV.UK for Tax-Free Childcare and, in England, the free hours.
5. Set a reminder to reconfirm every 3 months.
6. If you claim Universal Credit, compare the two before you change anything.

The free MTD check shows when Making Tax Digital starts for you, and the trades section has more guides.