Child tax credits does anyone know how they pay

[AuntieDonna]

Patents seem to think its okay to blame tax credits for lack of fees but I am trying to be really strict as parents still "earn a wage" so effectively should be paying regardless.

How often do tax credits pay is it weekly, monthly?

It's frustrating ...

Also if your fees change from term time to half term how do you work this out with patent!?? Or is this their job to work out with tax credits?

Thanks in advance

[FussyElmo]

Tax credits are paid weekly.

Always inform the parent your contract is with them not tax credits.

Tax credits did and I think still do accept an average price for the childcare

So for example

39weeks x £100
13weeks x £200

Is a an average weekly childcare bill of £125 and its up to the parent to budget for the holidays.

[murrayspud]

Tax credits rang me up to check charges they had been told matched with what I had told parents, and they said that they like to work with average costs as described by fussy elmo above. I explained that this is how I had calculated new pricing and they were happy with that
It is up to parents to inform about changes in work hours, childcare charges etc, but easier to work out childcare costs on an average charge - then at least you know where you are with payments, and they wil not be going up and down when school holidays are here, or term time kicks in.

[AliceK]

Tax credits can be paid either weekly or 4 weekly.
It is the parents responsibility to keep HMRC up to date with their childcare costs, it is NOT your problem and nor should the parent withhold payment to you and blame tax credits. Your contract is with the parent not HMRC and tbh where the parent gets the money from makes no difference, you invoice, they pay. Don't let them fob you off.

xxxx

[Chatterbox Childcare]

Have you thought about working a fee for the year and dividing it by 12 - I do this and it works out great as both the parents and I can budget, even on 5 week months the fee is the same.

Others may say this causes problems but I have in my contract "should this contract be terminated before the end of August of any year then the fees may be recalculated based on time used and monies paid).

I have found that I usually owe a pound or two. If working for school time children I run the contract from Aug to July or I could get caught with owing a months money if they left in July and I had started it from August

Hope that makes sense

[wendywu]

Your being paid does not depend on Tax Credits paying the parents. Tax Credits messing up should put the parents out not put you out

[bunyip]

Always remember: the parents are claiming Tax Credits, not you.

The parents' responsibility is:-

1. Calculate and advise HMRC of their average childcare costs.
2. Advise HMRC of any changes; I think they want to know of any change equivalent to +/-£10 a week (?)
3. Advise HMRC when they are no longer paying for childcare.
4. To pay you: on time, every time, with no excuses.

Your responsibility is:-

1. Provide parents with some proof of payments made (I use a receipt book). This should include a note of your EY number.
2. Co-operate with HMRC if they are conducting any enquiries/investigations into claims.
3. That's all.

Many CMs go a little further, in that they periodically remind clients to keep their TC information up to date with HMRC, and/or issue a notice to remind clients to inform HMRC at the end of the contract.

Also, any citizen is at liberty to report suspected fraud to HMRC, and that includes CM's reporting any client about whom they have genuine suspicions.

[bunyip]

BTw, does anyone know if the childcare element of TCs is itemised on the claimant's award notification letter?

I have a CM friend whose client says they'd like to renegotiate fees/times of care because her childcare TCs have been cut. My friend would like to ask for evidence of the cut, but doesn't want to look silly if she's asking for something that isn't shown in writing.

[lubeam]

Yea there's a break down of

Child tax amount
Working tax amount
Childcare element

There's also yearly earning etc so parents will have a hard job proving they are struggling if there not , your friend can have a quick noisey at the letter and know all incoming declared to tax credits lol
Hth ?!

[bunyip]

Thanks for the info.