I remember that under the WFTC rules, one third of a registered childminder's income was disregarded. I've been told by someone at the Tax Credit Office that this also applies to Tax Credits, but now have a registered childminder whose income (after expenses are deducted) seem to be being counted in full. I've spoken to the Advisers' Helpline, but they don't seem to know anything about this rule. Anyone got any experience of this? Thanks.

The Tax Credits (Definition and Calculation of Income) Regulations 2002 are silent in respect of childminding income. Therefore it would seem that they will be simply treated as self employed earners. This is in line with the way that they are treated for tax purposes, and the above regulations mirror tax legislation.

As a point of interest the same would appear to apply to Pension Credit (unless I've missed something in the amendment regs.)

the one third rule *does* apply to PC (but not as you say to TCs)

SPC Regs - reg 17B(1) and (5)(b) give effect to reg 13(4)-(12) of the Computation of Earnings regs for purpose calculating earning for self employment for pension credit. Reg 13 para (10) is relevant bit.

CPAG handbook page 963: CHILDMINDERS net profit is deemed to be one third of your earnings less income tax, your NI contributions and half of certain pension contributions. The rest of your earnings are completely ignored.

Thanks for this; I should have checked CPAG myself - I usually do, but didn't think it would cover this.