Changing from childminder to assistant

[jennyandchris]

Me and my Mum have always been child minders working together in her home. We are currently thinking about my Mum switching from a cm to my assistant. I know there is a lot of information on here about assistants but they were posted quite a few years ago, so I just wanted a bit of an updated version! Can I ask the following questions please?

First of all, is all we need to do immediately, is fill out form EY2?
Are assistants ofsted inspected?
I've read that assistants can now be self employed. So does this mean that I just give my Mum some cash as her 'earnings' and it would be treated as an expense for me. And my mum just fills in her own self assessment. I do not want to go down the route of employing someone.

Thanks for your help.

[bunyip]

Me and my Mum have always been child minders working together in her home. We are currently thinking about my Mum switching from a cm to my assistant. I know there is a lot of information on here about assistants but they were posted quite a few years ago, so I just wanted a bit of an updated version! Can I ask the following questions please?

First of all, is all we need to do immediately, is fill out form EY2?
Are assistants ofsted inspected?
I've read that assistants can now be self employed. So does this mean that I just give my Mum some cash as her 'earnings' and it would be treated as an expense for me. And my mum just fills in her own self assessment. I do not want to go down the route of employing someone.

Thanks for your help.

I don’t know the full answer, but I’m not at all sure you’d have a case for your mum to be a self-employed assistant. HMRC and DWP are clamping down on the status of 'self-employed' people where they would be more properly considered to be employees, precisely in this sort of situation. Your case seems to be based entirely on your own convenience, and that’s exactly what they’re trying to stop. Most employers would gladly make all staff into 'self employed' and not have to bother with payroll, NI, and employment rights such as holiday, maternity leave, pension, etc.

IIUC even nannies have to pass rigorous criteria before HMRC will consider them as self-employed.

Even if your mum could go self-employed, you couldn’t just slip her some cash for her expenses and call that it. She would need to have some contract for the work she does, and invoice you for her services, just as you invoice parents for the service you provide. She’d have certain rights and choices as her own boss. These include choosing whether she turns up on any given day, or sends in a competent replacement to do the work on her behalf.

How do you trade at present? Do you operate as a partnership, or are you each an entirely separate business, each with your own distinct clients?

[sarah707]

To be self-employed the assistant has to be free to work elsewhere - at any time - so they cannot be included in numbers.

That's how it was explained to me by HMRC :D