Government to look at tax breaks for hired help in move that could save households thousands each year

By
Daily Mail Reporter

Last updated at 4:00 AM on 10th February 2012

The tax break would benefit anyone who hires help for their house, such as a cleaner

Tax breaks for families to employ cleaners, babysitters and gardeners were described as ‘interesting’ by the Prime Minister yesterday.

The scheme, which would be aimed at helping working women with domestic chores, could save households thousands of pounds a year.

But any introduction of it could be politically explosive as it might be portrayed as encouraging the employment of domestic servants.

The tax break would also disproportionately benefit middle and high-income families who can afford hired help.

The Prime Minister said he was ‘very’ interested in the controversial scheme, which is used in Sweden  and Finland.

Under the system, domestic  helpers claim back tax credits directly from the government and then invoice families for the remaining amount.

The policy was introduced in Finland in 2001 to persuade families to put their cleaners on the books.

The tax break, which is worth up to £3,000, would benefit anyone who employs help around the house. But it is particularly helpful for women, who bear the brunt of housework.

Although it would cost billions to administer, the scheme would also raise revenue for the Treasury from domestic helpers paying tax for the first time.

Gardeners could also be paid for in the government’s new scheme

While attending the Nordic-Baltic summit in Stockholm, the Prime  Minister said: ‘What you do in  Sweden in terms of tax help and tax relief, not so much on childcare but on other things that help women go out to work, I thought that was a very interesting idea that I want to look at further.’

Labour MP Jessica Morden said: ‘This demonstrates how out of touch David Cameron is about the pressures facing women in this country.

‘He is suggesting tax breaks for people who can afford domestic workers at the same time as he is cutting tax credits for working parents and removing child benefit.

‘Is this what he means when he says we are all in it together?’

A No 10 spokesman said: ‘This summit was an exercise in taking on board and sharing lots of different ideas. That’s very different from saying we are going to adopt them. You can safely say we are not going to be adopting tax breaks for people who take on domestic servants.’

Share this article: