View Full Version : How do tax credits work?
I am seeing someone tomorrow and she wants to pay by tax credits. Does this mean I will have to work in arrears so she can claim the money, or can I just invoice her the same as other parents?
Any advice on how to approach it would be great as I know many people have had their fingers burnt by tax credits.
Sorry if the post is waffly
J
x
rickysmiths
12-01-2009, 11:18 PM
You set up a normal contract and she should pay you herself in advance.as if it were a normal contract, which it is.
she claims the tax credits from the tax man and the money is paid to her not you.which helps her recoup some of the cost of your fees.
. Be aware these credits are paid 52 weeks a year so dont do youself short. It was when I dicovered this years ago that I started charging for my holidays
You will need to give her a reciept when she pays you and it should have your name and registation number on and her name on.
singlewiththree
13-01-2009, 07:25 AM
They are paid 52 weeks BUT the parent should include any unpaid holidays to them and they usually ask when you arrange it. The money is then ammended, they can get up to 80% of the costs back. howver they do still have to find the 20% and the reason they are on it is they dont earn a lot of money so it isnt a reason to charge more. sorry its just one of my pet peeves as Im on tax credits and have had a couple of issues.
just charge in advance and its up to the parent to pay it even though the money usually comes thro on a friday.
Mollymop
13-01-2009, 07:58 AM
Just charge as normal hun. X
FizzysFriends
13-01-2009, 08:00 AM
They are paid 52 weeks BUT the parent should include any unpaid holidays to them and they usually ask when you arrange it. The money is then ammended, they can get up to 80% of the costs back. howver they do still have to find the 20% and the reason they are on it is they dont earn a lot of money so it isnt a reason to charge more. sorry its just one of my pet peeves as Im on tax credits and have had a couple of issues.
just charge in advance and its up to the parent to pay it even though the money usually comes thro on a friday.
I agree, it might be 'only' 20% they have to find but these people are on low incomes and it can be hard. My CM put the her rates up and gave the reason of well tax credits pay anyway.
Mollymop
13-01-2009, 08:01 AM
I agree, it might be 'only' 20% they have to find but these people are on low incomes and it can be hard. My CM put the her rates up and gave the reason of well tax credits pay anyway.
Well, that wasn't very fair of her!:mad:
balloon
13-01-2009, 08:08 AM
I have 2 parents on tax credits and they get treated exactly the same as all my other parents: Fees are always paid in advance, late payment fees are charged just the same, fees are worked out on the same scale (e.g. same hourly rate and I charge for child absence and hols but not my own).
I don't think CMs necessarily get more problems with parents paying out of their tax credits so don't worry about that unduly. Of course there will always be some who think they don't have to pay on time but that's just as likely to be somebody well off as somebody on the lower end of the financial scale...
Hope all goes well and you get the contract.
FizzysFriends
13-01-2009, 09:10 AM
Well, that wasn't very fair of her!:mad:
No, she also tried to make me pay all day even for after school pick up. She always blamed the rate increases on ofsted saying that she had no choice. Obviously I call ofsted to complain and was told she was making it up.
Chatterbox Childcare
13-01-2009, 09:21 AM
Tax credits are between the tax office and the parents. It can take some time for them to be set up if the parent hasn't claimed any more. How flexible you want to be is up to you.
They can claim UP TO 80% of the childminding cost and this depends on the amount of joint income, it is scaled. Don't forget about the childcare vouchers, these can save the parents £100.00 per month if they both can claim.
Andrea08
13-01-2009, 09:59 AM
I agree with every one, the parents like in my case once,, may fall behind because tax credits sometimes take time to go through,, yes can be up to 80% but if the parents only get 35% its a little help for the parents and not an excuse to charge over the norm.
i would make it clear to parents that it is none of our buisness if families get help towards childcare and that a contract between you is legaly bounding,
good luck x