View Full Version : tax credit help

06-01-2014, 07:33 PM
Hi I have had a lady sign up today for me to care for her child 2 after school evenings a week and then on holidays the full day of those contracted 2 days . She is going through tax credits to help towards the cost. Can some one help me with how this works please?

Ja-Lula-Belli Childminding

06-01-2014, 07:44 PM
The parent has to tell tax credit that they are using a childminder and pay them £x per week, she will need your ofsted number. She will then receive a percentage of of your fees each month and she then pays you the full amount making the difference herself.

On occasions Tax Credits will ring you to confirm that you have the child and what fees you receive from her, I have also had to put it in writing to them.

Hope this helps :thumbsup:

06-01-2014, 07:46 PM
Thanks. How would I work out the time when I have the child full time. I just invoice her as normal and she sorts out tax credits?

Ja-Lula-Belli Childminding

06-01-2014, 07:47 PM
The parent is still responsible for paying all your fees but if the family earns less that a certain amount they can claim money towards the fees through tax credits. (Up to 70%)

Tax credits can take some time to start to pay but the parent must still pay you while they are waiting they will get it backdated to the claim date.

Some parents try to use "tax credits haven't paid me your money yet" excuse for not paying or being late. You need to ensure that the parent understands that they still need to pay you on time whether or not tax credits have paid them.

I have parents who claim tax credits and have never used this excuse and always pay on time. It is only the minority that try it on.

Both of you need to work out the monthly/weekly fee and tax credits will work it out from there

06-01-2014, 07:48 PM
Thank you for your help I only have advanced payments. I'm not going to be in the position of chasing my money. X

Ja-Lula-Belli Childminding

06-01-2014, 08:01 PM
I work out the the term time amount and the holiday amount and average it over the 52 weeks which is what the tax credit dept and then invoice as normal during the year that way if there are any extras they get paid for by the parent anyway.