Summer’s a great time to take a breather and enjoy a bit of sunshine – but for working parents, it can also be one of the most expensive and stressful parts of the year. If you’re a business owner, the juggle between keeping work ticking over and keeping the kids entertained (and cared for) can be a real balancing act.
Here’s a practical look at what support is available to help ease the cost of childcare this summer – plus some tips to help you plan ahead without compromising your work.
The Real Cost of Summer Childcare
Childcare costs can shoot up during the holidays, especially if you don’t have the flexibility to take time off. Whether it’s holiday clubs, childminders, or enlisting help from family, the cost of covering several weeks can quickly add up.
Even if you’re working from home, keeping your usual working hours with children around isn’t always realistic – which can affect productivity and earnings.
Can Business Owners Claim Childcare Costs?
In short – not directly through your company.
Childcare isn’t considered a business expense, so you can’t put it through the books. But that doesn’t mean there’s no support available.
Support That Is Available
Here are some ways you might be able to reduce the financial strain:
Tax-Free Childcare
- For every £8 you pay in, the government tops it up with £2.
- You can get up to £500 every three months (or £1,000 if your child is disabled).
- It’s available for children up to 11, or up to 17 if they have a disability.
If you’re eligible, this can make a significant dent in the cost of holiday clubs or registered childcare providers.
Universal Credit or Childcare Element of Working Tax Credits
- If you’re claiming Universal Credit or tax credits, you may be entitled to claim back a portion of your childcare costs.
- This won’t apply to everyone, but if your household income is lower or variable, it’s worth checking.
15 and 30 Hours of Free Childcare
- These apply to children aged 3 and 4 during term time, but some providers will allow you to ‘stretch’ the hours across the summer weeks.
- From September 2024, more funded hours are being introduced for younger children – so if you’ve got a toddler, it’s worth seeing if you’re eligible.
Childcare Vouchers – Still Around?
If you joined a workplace childcare voucher scheme before it closed to new applicants in 2018, you might still be using it. These can still be a great way to save if your provider accepts them – but you can’t switch back once you’ve moved to Tax-Free Childcare.
Planning Ahead as a Business Owner
Running your own business can offer a bit of flexibility – but it also means the work doesn’t stop just because the school term does.
Here are a few things that can help:
- Block out your time early – Let clients or customers know your summer availability in advance and plan lighter workloads if needed.
- Build in buffer weeks – Try to schedule quieter work periods during peak childcare weeks.
- Budget for the spike – Set aside a bit extra in the months leading up to summer so the hit isn’t as sharp.
A Final Word
Childcare costs can feel like just another thing to juggle, but there is support available – and with a bit of planning, it’s possible to keep things running without burning out or blowing the budget.
And if you’re unsure what’s claimable or how to plan your cashflow around the summer spike, we’re always happy to help.
PaperRocket are a multi award winning Chartered accounting practice, and Accredited FreeAgent Practitioners.
We specialise in providing friendly, non-accounting jargon, services for contractors, freelancers, sole traders, and landlords across the UK.
Our fixed fee monthly accounting packages all include a FreeAgent subscription as standard and unlimited support from your allocated accountant.
To find out how we can help you please get in touch now.
