Fee help

[leahsfx]

New to this and setting up a business plan. Wondered what people's thoughts / experiences are on payments for childminding... When to get paid, how often (weekly/monthly) and in advance (if so how far) I'm aware of the deposit situation but need info on actual childminding fees not sure what to ask parents for etc re payment dates!? Hope that makes sense :)

[Mouse]

I always take payment in advance, but it's up to parents whether it's monthly or weekly, dependant on how they are paid or when they get their tax credits.

Monthly payments are due on or before the first of the month. I give out invoices a week before.

Weekly payments are due on the last working day of the week for the following week. So if a child attends Mon-Wed, payment is due each Wednesday for the following week.

[bunyip]

I only accept payment in advance, "with a no payment = no childcare, no exceptions" line in the contract. I've found that being clear on this ensures you get parents who prioritise their childcare ahead of their holiday, new phone, hairdresser, tattooist, etc. etc. and I just don't get the sort of arrears rubbish that too many CMs let themselves in for.

I temper this by allowing clients to pay monthly, weekly, or even daily - their choice - so no-one can say I'm demanding too much up front.

With regard to Tax Credits, you need to make sure clients understand that your fee is payable on time, every time, no matter what sort of delay there may be in receiving TCs. They pay you, and the reimbursement they get through TCs is between them and HMRC: you don't wait for HMRC to settle TCs before they are expected to pay you IYSWIM.

(Mouse - I'm not criticising your TC policy, just putting it in context - I hope. :) )

[Mouse]

(Mouse - I'm not criticising your TC policy, just putting it in context - I hope. :) )

That explains it more clearly than I did!

If parents receive their tax credits weekly I will accept payment weekly in advance. Similarly, if they receive it monthly, I accept payment monthly in advance. Payment isn't dependent on them receiving tax credits, but I am flexible enough to fit in with their budgeting plans.

If there's a delay in receiving tax credits, or if tax credits forget to pay them, or the bank makes a mistake and there's no money left, or someone hacks their account and clears it out (oh, I've heard them all before :rolleyes:), I still expect my fees to be paid in full and on time as per the contract :thumbsup:

[tulip0803]

I have parents that pay weekly, Monthly and 4 weekly. They pay by cash, direct transfer and cheque. I accept anyway that is convenient for them, never in arrears and always to be cleared by payment date whatever that may be.

Only arrears I have is a payment through social services and before that a college who paid me direct. Tax credits childcare element is to be used to pay child care but if it hasn't come through I still require payment of the full amount on the day expected. I have a late payment fee on all my contracts if parents do pay late they incur charges.

When I had a parent at uni they had to pay the fees themselves until their grant appeared.

[leahsfx]

Thanks everyone for your input :) it's all looking a lot clearer now! x