Child tax credit

[wiggy89]

I have had an enquiry and the mum wants to pay using tax credits. I am not familiar with this at all! She asked what she needs to do, and ideas please?!

[sarah707]

The parent is responsible for paying you - not tax credits.

Tax credits might give parents a percentage of your fee depending on their earnings BUT parents must pay you regardless of how long that takes to come through.

The parent can find more information on the tax credits helpline.

I strongly suggest you ask for money up front before care starts and do not look after the child without it in your bank.

Hth

[Mouse]

Parents need to contact tax credits and tell them how much their childcare costs will be.
Tax credits will then tell them how much benefit they will get towards the costs.
Parents receive this money directly into their bank account (I think it can be weekly or monthly, my parents all get it weekly).

As Sarah says though, the contract is between you & the parents and it is up to them to pay you, no matter how much tax credits they get or whether the payment has gone into their account or not.
If they don't receive their money for whatever reason, you still need to be paid.

Make that very clear from the beginning. And again, as Sarah says, ask for payment in advance before the child starts with you.

[wiggy89]

Thats brilliant thank you both very much!