Information for childminders who take care of children in their own homes

You are self-employed if you are a childminder and take care of children in your own home. You receive, as a childminder, a number of benefits in relation to other businesses or self employed persons where the children you take care of are under 12 years of age or they are older and have special needs for care, i.e. due to a handicap. 

No accounts

You do not need to maintain accounts for the childminder activity. You also do not need attach an income statement or own private employer statement to your tax return.

Lower social security contributions than other businesses or self employed persons

You should pay social security contributions at the same rate as wage earners

Tax return, deductions for food and wear and minimum standard deduction

The income from the a-message which is submitted by the child’s parents, will appear in the childminders’ tax return. Gross payments from parents will normally be split into a part which is an expenses allowance and a part which is taxable remuneration for the work. The part of the payment which relates to an allowance for food and wear (expense allowance) is not to be included into the calculation of income. Make sure that the allowance for food and wear is deducted.

If the expense allowance is not specified in the summary reported by parents, then you can calculate a deduction for your operating costs in the tax return. The standard deduction for costs for childcare in your own home is 50 per cent of the amount you receive, but maximum NOK 1,155 per month per child (rate for Standard deduction for the income year 2015). If you choose to use this standard deduction, then you are obliged to use this for minimum five income years if you continue as a childminer unless conditions significantly change.

You can instead claim deductions based on documented actual costs, where you are not bound to using this standard deduction. All expenses are, in this case, listed in a separate attachment. Remuneration for work and any profit on expenses allowances are included in the calculation basis for minimum standard deduction.

Personal income

Personal income is the net remuneration for work which is specified in the summary of reported amounts, after costs for food and wear in the home have been deducted. Personal income provides the basis for calculation of social security contributions and surtax and accrual of pension credits or pension funds. 

Rights

You normally the have right to sick pay when you are sick. 

You also make payments to your retirement pension. If you were born in 1953 or earlier, then your pension accrues based on the old pension credits rules. When personal income is higher than the national insurance scheme’s base amount, then you receive pension credits and a separate basis for a supplementary pension from the national insurance scheme. The average basis amount is used in the calculation of pension credits for the year. 

If you were born in 1954 or later, then your retirement pension is based on the new rules on accrued pension funds: annual pension accrual being 18.1 per cent of the pensionable income. 

Check with NAV about the rules for this and what other rights you have in the National Insurance scheme. 

Advance tax

Those who make payments to a business or self employed person should not deduct advance tax from the amounts earned. The family that is your client does not make any tax deductions. You must therefore pay advance tax. Your tax office sets your advance tax. If you have not received your advance tax notification or if you believe that the advance tax is incorrect, then you can change your advance tax automatically.