View Full Version : Childcare element of tax credits

15-12-2013, 10:50 AM
Hi just a quick question. I have a family who pay by Childcare element of tax credits and the rest herself.

The family pay weekly of x amount however we are a week behind and they owe me 2 weeks pay this week otherwise I cannot afford to feed my family as I went 2 weeks with no payment from them but paid out for food etc which is pricey as there are 3 children involved.

Now mam has said that tax credits are only sending £185 a week so she can't give me the week she owes for in November.

Is this right? If so does this mean I will only receive £185 during the holidays too? As this less than half the money that will be owed for the 2 Christmas weeks holidays!

Any advice would be great :-) I don't want to stop Childcare but may have to on account of not being paid what I am owed!

Can I contact tax credits as they have my details or does it have to be her for data protection??

15-12-2013, 10:57 AM
Parents sign a contract with you so they are responsible to pay your fees in full.

How they obtain their funds to pay you is not your concern.

If tax credits are paying a parent less than the parents expected them to that is their problem and not yours.
If Tax credits are paying parents less than 70% it is because they are earning more through their pay packet.

You are not claiming the TC's so they will not discuss her claim with you

Hope that helps

15-12-2013, 11:08 AM
It does thank you outside perspectives are always good as you can see things I have forgotten like the contract and where the money comes from isn't my concern.

This is my first year on minding and I have to admit chasing money isn't my favourite part haha.

I just worry if I force the issue ill loose the family and income.

15-12-2013, 11:29 AM
I agree with Kiddleywinks. If you're worried about losing the family and the income, look at it this way….What income?!? You aren't being paid correctly anyway. So unless you can very quickly rectify the situation, you've lost the family anyway. You can't work for nothing.

I would send her an invoice for all money owed to be paid within two days, otherwise you will cancel service until all money is up to date. I would then ask her if she can afford to pay on time. I know this sounds harsh, but you are a business not a charity. Be polite but firm. :thumbsup:

15-12-2013, 12:31 PM
As the others say the parent has signed a contract with you and is responsible for paying the fees. Tax credits will pay money towards fees but the parent is ultimately responsible for paying you the FULL amount.

You need to write her a letter with the full amount owed and a date to pay you by. Also write on the letter that if you do not receive full payment by that date you will place it in the hands of your insurance company which will mean that court proceedings to recover the debt may start.

No payment means that you can no longer care for the children as you are a business and you need to pay your bills too.

Bet she hasn't cut back on her Christmas spending!

15-12-2013, 12:34 PM
Thanks lottie,

I have heard from mam after pointing out what you have said about being a business and she's told me tax credits have confirmed they are paying her a week in arrears.

This isn't ideal for me but as long as I get the payments that are due then I am happy to carry on with the family as they are lovely really I was just worried I wasn't going to get paid.

Just means my holiday payments over Christmas will arrive in the new year. God sorting money out is so hard they don't prepare you for this at all do they?

15-12-2013, 12:42 PM
Thanks tulip :-) I'm going to Anne d my policy in feb when they are due for renewal I think to state that I need paying on time regardless of when tax credits or vouchers are paid to them.