advice re sleepover contract

[jadavi]

Hi, I am about to clinch the overnight contract for the night shift worker but she expressed a bit of dismay at the idea of (her) holiday fee, She has organised a few family members to stay with her over the year to save money on my care... She's a struggling single mum and I feel guilty as its not as if I have to keep the place open as its highly unlikely someone else will want the bed....

Does anyone not charge for their absences?

I was thinking maybe charge half price. This is my business.

thoughts anyone?

cheers
jac

[blue bear]

You need to work out how you manage your budget for the year, after all you get used to a regular income. Can you afford half fee? Will you give her maximum weeks or can you afford for lo not to come when ever mum can Organise alternative care. In all likelihood mum will claim tax credits and will most likely get help towards fee.

Not done it myself but might go for half fee 4 weeks max a year if it was me

[jadavi]

Thank you, yes she will get tax credit but still has to pay me £12 a night and its 2/3 nights a week,
Think I will suggest half fee for a maximum of 4 weeks
thanks.
jac

[The Juggler]

why not just let her pay the tax credit payment whilst she's on holidays and not pay the £12 she pays herself.

[jadavi]

Wow what an ingenious solution! Would that be legal ?

[The Juggler]

Wow what an ingenious solution! Would that be legal ?

I guess, tax credits will be paying her the same amount, assuming she is using the care all year round, so their payments will not stop. Therefore if you allow her to pay half fees when she's away she is in effect making money so I would have thought you would need to charge her at least what tax credits are paying her???

Sure someone will be along who knows the answer though. You could always ring tax credits with a hypothetical question maybe to fidn out.

[jadavi]

Thank you. Does anyone else have info on this?

[jane5]

I have a mum on TC and I am led to believe that TC pay a % so if they pay 70% and she makes up the remaining 30%, if you give her a discount of 30% on her holiday weeks then TC will only pay 70% of the 70% due iykwim.

They also check up and ask what you have been paid by her and if they have paid her more than she has paid you for childcare they will deduct it from her next years money so she will lose out and she may also be in trouble for fraud for keeping money that was to be paid for you.

So if you charge her less on some weeks she has to inform TC and they will also pay her less as they will never pay 100% of her childcare bill.

Sorry if that was a bit of a messy answer :blush:

[crazyhazy]

I have a mum on TC and I am led to believe that TC pay a % so if they pay 70% and she makes up the remaining 30%, if you give her a discount of 30% on her holiday weeks then TC will only pay 70% of the 70% due iykwim.

They also check up and ask what you have been paid by her and if they have paid her more than she has paid you for childcare they will deduct it from her next years money so she will lose out and she may also be in trouble for fraud for keeping money that was to be paid for you.

So if you charge her less on some weeks she has to inform TC and they will also pay her less as they will never pay 100% of her childcare bill.

Sorry if that was a bit of a messy answer :blush:

technically this is correct, BUT tc themselves advise you only need to notify them of changes to childcare costs if they change by £10pw or more and it will be for more than 4 weeks, http://www.hmrc.gov.uk/taxcredits/keep-up-to-date/changes-affect/how-when-report.htm

I have been in a similar position with a shift worker, whose hours varied and a couple of times it was under what tc gave her so she paid me what they gave her. I'm pretty sure 99% of parents don't notify tc when their childminder is on holiday and they aren't paying anyone and actually from the above link it doesn't seem like they expect you too, although obviously it would be better to average the costs for the year but with shifts that's pretty much impossible to do accurately.

[jadavi]

Thank you - this is really helpful. They have no way of knowing if she gives me her share (30%) or not do they? Could I not ask for that in the days she has her lad at home?

Do the TC people need to see a copy of the contract? Would my holidays have to be taken into account?

[jane5]

They randomly call and ask for the exact amount that you have been paid and work it out annually. She may get away with it but she may not.

I personally would not give her a reduction if she can get some one else to look after the child as I charge full for their holidays and nothing for mine.

[jadavi]

Does tax credit pay directly into mour accounts or do they pay her and she forwards it?