Allow self-employed single parents to claim childcare as business expense

Background

Amend HMRC rules to allow self-employed single parents and self-employed households to deduct registered childcare and holiday club costs as an allowable business expense on their Self Assessment tax returns.

Additional details

We believe HMRC rules penalise self-employed single parents ineligible for Universal Credit. Disallowing childcare as a business deduction can result in a double penalty during school holidays: parents may have to stop trading or pay holiday club fees from taxed net profits. Corporations can claim workplace childcare as a tax-deductible staff cost. Without childcare, self-employed parents may be unable to operate. We feel childcare is an operational necessity, not a luxury. It should be an allowable business expense to ensure tax fairness.

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