A new campaign calling on the Government to make childcare costs tax-deductible for self-employed parents has launched this week and is backed by new research showing strong public support and a growing demand for change.
Commissioned by entrepreneur and former Apprentice star Michelle Niziol, the national survey of 257 working women aged 25–54 revealed:
- 90% support the idea of making childcare an allowable business expense for self-employed parents
- 85% believe employed parents get better access to childcare support and maternity pay
- 75% say self-employed mothers face greater financial risks when starting a family
- 76% believe the current system actively discourages women from starting a business
- 77% of business owners say they would have more successful businesses if they could afford more childcare
- 34% of employees say childcare costs are the main barrier to becoming self-employed
Currently, while self-employed parents can access limited support such as tax-free childcare, they cannot claim childcare costs as a business expense, even when care is essential to continuing their work or keeping a business running. Unlike employed parents who can take paid parental leave, many entrepreneurs must return to work early, relying on costly childcare without tax relief which creates an unfair system that disproportionately affects women and holds back both economic growth and gender equality.
‘The system is simply out of step with modern working life,’ said Michelle.
‘Self-employed parents, and women in particular, are being penalised for working flexibly or running their own businesses. If we want to encourage entrepreneurship and economic growth and support working families, this is a simple and impactful change the Government can make.’
The campaign calls on policymakers to level the playing field by allowing childcare costs to be claimed against tax for self-employed individuals, recognising them as a legitimate business cost, just as office space or software would be.
The petition is now live and aims to gather support from across the UK in the run-up to the autumn fiscal agenda. https://michelleniziol.co.uk/petition/
