Tax Credits

[helenlc]

I wonder if any of you have an opinion on this....

Two of my parents get the 80% of their child care paid by Tax Credits. One of them get hers on a Saturday so i expect her to bring the money on Monday (I see her at the school when she drops off her son who i then have after school).

However, I often find myself having to chase her for my money and actually have to ask whereas I think it should be automatically handed over.

What i wonder though is if anyone thought it would a good idea for the tax credit element that is due to the child care setting ie me, to be paid directly into my account rather than the parents?

Yes, I would have to chase her probably for the top up amount, but at least i would have the majority of it. The other week she couldnt pay me because her loan payment had come out and swallowed my tax credit part up with it!! So I had to wait until the following weekend to get my money.

I wonder whether this might also help in the case of non-payers as they would then have no control over whether you recevied the money, at least the tax credit 80% anyway.

Just getting opinions really.

Thanks

[aly]

i think you can get it that way. im almost sure when i was paying nursery i had a choice of either having it paid direct or for it to be paid to me.

its worth asking at least..

good luck :thumbsup:

[FizzysFriends]

But as once they are school age they are done on an average you could end up being paid more than what is owed and then having to give the parent money back.

[sarah707]

Tax credits will not pay money to you I'm afraid...

What I think you need to do is get tough over late payments and charge for them...

That should bring the parent to their senses a bit...

You are right, if you provide a service, you should expect prompt payment! :D

[helenlc]

Unfortunately, she is also a friend, so its hard!

I will not take on a friend's children again. I know all her money worries and so find it hard to then demand from her. She may have lost her job, pretty sure she has, so going to get her to terminate contract, do notice period etc. And if she finds another job, I may still not take them on again.

But thats why I though if tax credits went straight into mine, I could make some arrangement with her whereby she gave me the top up amount at the end of the month when she got her wages.

But yes, ultimately, I just have to be tougher!!

[brillminder]

i dont know if you already do - but give her a payment due / invoice in an envelope with when due etc all written down and be very business like :) give her example you cannot go to tesco and pay later :) good luck

[angeldelight]

You make the rules its your business

Tell her if she does not pay on the due date you will charge late fees

Good luck

Angel xxx

[susi513]

I know its difficult when its a friend, but consider if you were the checkout operator scanning her groceries - you'd still take her money right? You've got to consider that your services justify prompt payment just as much as the petrol in her car, groceries in her fridge and clothes in her wardrobe ...

You have to make a choice - put up with the late payments to keep the contract and the friend, or be tough and bill promptly and keep on adding the late fees.

I don't want to be paid tax credits direct because:

- I would always be paid in arrears
- the tax office wouldn't agree to pay my late payment fees
- I would have to spend my time and cost of calls in contacting the tax office if they c**k it up. Which they will.
- I would have to pay it back, presumably if the parent was overpaid?
- pursuing either the parent or the tax office for non-payment would be a nightmare
- if a claim is found to be fraudulent, or the parent has not given accurate info etc, I would be involved in the investigation no doubt.


I prefer it the way it is - my fees are paid in advance by the parent and if they pay late I can add on late fees or waive the late fees at my discretion. If they happen to get reimbursed by a third party, whether tax credits, college, relative, employer or whatever, thats between them and none of my business and has no effect on their obligation to pay me.

[Noodles]

Inland revenue wil not pay direct to the carer as it would be to complicated. people change childcare providers and hours quite regually and also have more than one childcare provider who they pay sometimes weekly and sometimes monthly.

[buildingblocks]

Tax credits will not pay money to you I'm afraid...


I agree with Sarah but i am sure I read somewhere recently that it is in the pipeline to be changed I know it was raised at conference that it should be oad straight to the carer not the parent.

[Pauline]

I agree with Sarah but i am sure I read somewhere recently that it is in the pipeline to be changed I know it was raised at conference that it should be oad straight to the carer not the parent.

I too read somewhere that there were plans that tax credits were going to be paid direct to the childcare provider in the future, can't for the life of me remember where I read it now! (another senior moment!:rolleyes:)

[helenlc]

Thanks for your responses. Its kind of irrelevent now anyway as she has lost her job and so given me notice.

But if she asks me again when she gets another job, I will tell her from the start that I expect my payments on time and will be applying late fees if she is late with them.