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vix84
25-10-2011, 07:07 PM
Hiya, Im taking on a mindee and usually ask for a months fee's in advance, but she hasnt got this so I have agreed to take payment in arrears as she will be claiming 70% of the costs from benefits.

Who pays me? Does she recieve the benefit and then pay me or does the tax office pay me and she tops up?

Slightly concerned also about if Im on holiday that she wont let them know I havent charged her as she said something like 'I dont know how they work, surely I wont have to let them know if your off sick and repay them'.....

Would make sense for them to pay me directly but no idea how it works?
Any insight?
Any advice about payments in arrears? Is there a water tight contract I could use instead of my own incase of any issues? Or would the tax office ensure I get my 4 weeks notice period if she were to hand in notice and refuse to pay up?

Just a bit nervous from a couple of her comments about her credit history and also not notifying them if Im off sick

miffy
25-10-2011, 07:15 PM
Parent gets the money and pays you.

Tax credits continue for 4 weeks after person loses job so, in theory, there would be money to pay you the notice period although, in practice, getting it from parent might be more difficult! :rolleyes:

This might help you

http://www.hmrc.gov.uk/TAXCREDITS/

Miffy xx

rosebud
25-10-2011, 07:27 PM
Your contract is with the parent NOT hmrc so you just complete your contract in the usual way. Maybe emphasise to the parent that she needs to pay you whether they pay her or not.
I would also advise against payment in arrears, if she can't afford a months fees up front do it weekly but still in advance. I have just taken on a similar family and am doing weekly payments in advance for 6 weeks to give them chance to get their finances sorted and will then change to monthly in advance.

Chatterbox Childcare
25-10-2011, 07:42 PM
TC, once set up, is paid for weekly if requested.

I would never under any circumstances work longer than 2 weeks to start off with and then I would want my money a week in advance.

crazyhazy
25-10-2011, 07:46 PM
I have a few parents who claim through tax credits, I did originally start out asking for a month in advance but quickly realised that it just wasn't feasible for some parents. So, I have two single mums who claim tax credits and pay me in arrears every friday, it works for me, they are reliable which obviously helps, but I figure with getting money weekly there is never going to be much owing (one contract is £29pw, the other £60pw). Tax credits only ask to be notified if payments change for more than 4 weeks in a row so no they don;t need to tell them if you're off sick or on holiday, presumably they would need to pay someone else for childcare anyway.

vix84
25-10-2011, 08:32 PM
I have a few parents who claim through tax credits, I did originally start out asking for a month in advance but quickly realised that it just wasn't feasible for some parents. So, I have two single mums who claim tax credits and pay me in arrears every friday, it works for me, they are reliable which obviously helps, but I figure with getting money weekly there is never going to be much owing (one contract is £29pw, the other £60pw). Tax credits only ask to be notified if payments change for more than 4 weeks in a row so no they don;t need to tell them if you're off sick or on holiday, presumably they would need to pay someone else for childcare anyway.

No because she has a friend who helps as back up so she would pocket the cash!
Will ask about paying weekly in arrears, thats a much better idea!

carol cameron
26-10-2011, 08:19 AM
As others have said tax credits pay parents and parents pay us.

I have learned the hard way to charge full fee all year round (except for my 4 weeks holiday when I charge half fee) as I have lost so much money in the past.( That's for all my parents by the way not just those on tax credits)

When I charged half fee for parents holidays one parent used to tell me she would keep the kids as she "was skint and I need the tax credits money this week". It cost me a fortune in lost fees
:(