tax credits

[megg21]

Hello,
I've just had my first enquiry yippee I've explained to mum in regards that I must wait for my certificate before I start minding she appears fine with that . I was just wondering though she has enquired about tax credits and I was wondering how I go about making sure she can use them .

[bunyip]

Hello,
I've just had my first enquiry yippee I've explained to mum in regards that I must wait for my certificate before I start minding she appears fine with that . I was just wondering though she has enquired about tax credits and I was wondering how I go about making sure she can use them .

Hello megg :waving:

The short and simple answer is that you cannot make sure she can use them, and you shouldn't try.

A tax credits claim is entirely between the parent and the HMRC Tax Credits office. IMHO you shouldn't even give the mum any more advice than to refer her to the HMRC website and 'phone number. The website has a ready-reckoner, which can give a rough estimate, but it is no guarantee of a successful TC award. Anything more and you risk a backlash if she doesn't get as much as she hopes for. In any case, only an accountant or financial advisor is legally competent to give that sort of advice, so it really is safest to steer clear.

The best way you can help her claim is to do the usual things right. Make sure you have a signed contract with the days/times of care and fees clearly shown. Let mum have your EY registration number*. Keep an accurate register of the child's attendance. Issue proper receipts for all money taken from the client.

*Most CMs recommend holding back on giving out your reg number until mum signs the contract. This is because an EY number can be used to make a fraudulent claim. Personally I think it makes no odds, as anyone who wants to make a fraudulent claim can lift any local CM's details from the Ofsted website in seconds, but mine is a minority view.

Be prepared to respond to an HMRC request for information, as they do spot checks or follow up if they suspect a fraudulent/excessive claim. Tell clients that you are obliged to do this, and they'll be less inclined to take chances.

There's one other big thing that you need to be 100% clear about with clients. You must be paid in full, on time, every time. Be firm or you could live to regret it, as all too many CMs have been sh4fted by parents over this.

I cannot stress this strongly enough. The TC claim is none of your business and not your problem. The client pays the invoice, they then claim from HMRC and you do not wait until HMRC pays the client. Warn mum that the TC claim can take weeks to sort out before she gets any money from it (if at all: she may get far less than she hopes or possibly nothing at all). She is still required to pay you throughout that time, no excuses. Be aware that far too many mums are over-optimistic about their TC entitlements. Many mums wrongly assume they will get the full 70%-odd of childcare costs covered (usually because So-and-So down at the Co-op said she'd get it) - only to be badly disillusioned when the HMRC TC award letter drops through the door. None of this is an excuse to get mum out of her contract/obligations/payments. It is well worth ensuring you are paid in advance and/or have a hefty deposit in place to cover this sort of outcome. A lot of CMs have lost a lot of money because they didn't put this sort of financial safeguard in place, then the mum walks away and leaves a huge debt which cannot be enforced if she has no means of paying. It's up to you how much you love working for free. :p

Never accept a parent bleating on that "I can't pay you until my TCs come through." Quite simply, it is not your job to worry about where the money is coming from or accept any excuses at all for late payment or non-payment.

[megg21]

Thank you for the response this made it easier for me to understand Thank You .

[Simona]

Hello megg :waving:

The short and simple answer is that you cannot make sure she can use them, and you shouldn't try.

A tax credits claim is entirely between the parent and the HMRC Tax Credits office. IMHO you shouldn't even give the mum any more advice than to refer her to the HMRC website and 'phone number. The website has a ready-reckoner, which can give a rough estimate, but it is no guarantee of a successful TC award. Anything more and you risk a backlash if she doesn't get as much as she hopes for. In any case, only an accountant or financial advisor is legally competent to give that sort of advice, so it really is safest to steer clear.

The best way you can help her claim is to do the usual things right. Make sure you have a signed contract with the days/times of care and fees clearly shown. Let mum have your EY registration number*. Keep an accurate register of the child's attendance. Issue proper receipts for all money taken from the client.

*Most CMs recommend holding back on giving out your reg number until mum signs the contract. This is because an EY number can be used to make a fraudulent claim. Personally I think it makes no odds, as anyone who wants to make a fraudulent claim can lift any local CM's details from the Ofsted website in seconds, but mine is a minority view.

Be prepared to respond to an HMRC request for information, as they do spot checks or follow up if they suspect a fraudulent/excessive claim. Tell clients that you are obliged to do this, and they'll be less inclined to take chances.

There's one other big thing that you need to be 100% clear about with clients. You must be paid in full, on time, every time. Be firm or you could live to regret it, as all too many CMs have been sh4fted by parents over this.

I cannot stress this strongly enough. The TC claim is none of your business and not your problem. The client pays the invoice, they then claim from HMRC and you do not wait until HMRC pays the client. Warn mum that the TC claim can take weeks to sort out before she gets any money from it (if at all: she may get far less than she hopes or possibly nothing at all). She is still required to pay you throughout that time, no excuses. Be aware that far too many mums are over-optimistic about their TC entitlements. Many mums wrongly assume they will get the full 70%-odd of childcare costs covered (usually because So-and-So down at the Co-op said she'd get it) - only to be badly disillusioned when the HMRC TC award letter drops through the door. None of this is an excuse to get mum out of her contract/obligations/payments. It is well worth ensuring you are paid in advance and/or have a hefty deposit in place to cover this sort of outcome. A lot of CMs have lost a lot of money because they didn't put this sort of financial safeguard in place, then the mum walks away and leaves a huge debt which cannot be enforced if she has no means of paying. It's up to you how much you love working for free. :p

Never accept a parent bleating on that "I can't pay you until my TCs come through." Quite simply, it is not your job to worry about where the money is coming from or accept any excuses at all for late payment or non-payment.

Absolutely fabulous advice Bunyip.....TC are none of our business and we should not get involved but put precautions in place to avoid any shortcomings in payment.

Out of curiosity...did you know the govt has 'tweaked' the new Tax Free Childcare system...wonder what you think of it?

[bunyip]

Absolutely fabulous advice Bunyip.....TC are none of our business and we should not get involved but put precautions in place to avoid any shortcomings in payment.

Out of curiosity...did you know the govt has 'tweaked' the new Tax Free Childcare system...wonder what you think of it?

Dunno really.

Is it anything like the recent "tweak" to (so-called) British Values? ie. Anyone who doesn't like dropping bombs on civilians just because they live in a hot country is therefore a "terrorist sympathiser"? :(

Fill us in.

[Simona]

Dunno really.

Is it anything like the recent "tweak" to (so-called) British Values? ie. Anyone who doesn't like dropping bombs on civilians just because they live in a hot country is therefore a "terrorist sympathiser"? :(

Fill us in.

Not sure Morgan herself knows...when asked she just opened her eyes even wider and mumbled some rhetoric!!

I'll go and find the latest by Morgan on the Tax free Childcare and post it!

[Simona]

This is the 'updated' publication on Tax Free Childcare (Nov 2015)

I have not checked the changes but I understand it has a few

https://www.gov.uk/government/news/tax-free-childcare-10-things-parents-should-know