Fees in Advance - Tax Credits/3rd party payments

**yummymummy_2006** · 22-02-2008, 12:58 PM

Hi again girls

Just re-writing my policy on fees because after reading your horror stories about not being paid - I decided to be paid in advance.

Only problem I'm having is with parents who may be receiving tax credits against their childminding, should I just say no if they are unable to pay a weeks childminding upfront. Also what do you do if you are unexpectedly unable to work on one of the days you have already been paid for - do you credit it against the next weeks childminding?

Also one of my friends has had a payment problem through a 3rd party, she was asked by mum to have her LO whilst attending training scheme and training scheme were paying for mums childcare both parties ie mum and training scheme signed contract to be paid weekly. She sends the invoice to the training scheme every week but has waited nearly a month for 1 of the payments due as "they haven't processed it yet".
Unfortunately she has nothing in her policies and procedures to protect her ie. late payment fees ect and is just having to wait for her money but it is taking near enough 3 weeks to process one weeks payment.
I told her to give them her notice but she doesn't want to do this because only people she will be upsetting is mum and LO and it isn't their fault she isn't getting paid.

It is probably unlikely that this will happen to me but how can I protect myself against things like this happening and have it clear in my policies. I don't want to feel mean and discriminate against people who are not working or cannot afford to pay for childcare themselves as I know how hard it can be for parents affording childcare ect. reason I decided to become a childminder

Thanks for any comments in advance

**Heaven Scent** · 22-02-2008, 01:50 PM

Would love to help but don't know how tax credits work, a childminder who lives across the road from me gets paid by job centre and mum has some sort of job in local school - I've never come across this. I have 1 parent who comes in some school hols who is paid through tax credit system but she still pays me in advance on first day of attendance each week. I don't know if she claims for it every week 52 wks per year or what but have too many other things to worry about at the moment.

Celine

**sarah707** · 22-02-2008, 02:30 PM

Hello yummymummy, that's a lot of questions!

I suggest you have a look around the forums - I am sure there are lots of answers out there.

There is no right or wrong way with money - we all do different things and it is your business. I remember some interesting debates about fees in advance on various threads...

Have fun browsing!

**Tatia** · 22-02-2008, 04:14 PM

What does LO stand for?

As for being paid by training scheme, I bet that is annoying to have to wait but she can probably at least rest assured that she'll get her money. I have been paid by LEA before for community childminding and waited forever. Red tape and paperwork, blah! I'm not sure what else your friend can do but maybe try a polite phone call?

About tax credits and payment, I still expect payment in advance. You're not doing parents any favours by letting them get in arrears. That being said, I am willing to be flexible for those I know struggle as long as they don't take advantage. I try not to make exceptions too much but I have a single mother of 2 and she doesn't get her tax credit til Wednesday, can't afford to advance it but has always been faithful about paying me soon as she gets it in her account. I don't mind being flexible for people who appreciate it. I wouldn't let her go past that week, though because I know she'd never be able to catch up then cos her income is so tight. Thankfully, it's never been an issue.

**deeb66** · 22-02-2008, 04:16 PM

Originally Posted by Tatia

What does LO stand for?

Little One

**Lou** · 22-02-2008, 05:37 PM

I would agree with whats been said, i personally ask for payment monthly in advance, if someone has a massive problem with this then i would be prepared to be flexible if there was a genuine problem.

Luckily everyone is really good and happy with this. If i had to take an unexpected day off, then i would simply knock it off the following month.

I have one parent who pays partly by Accor vouchers and then tops it up to make the full amount. I am happy with this, and i am happy to accept any vouchers but i do write in contract that this is the parents responsibility and if there are any problems with the vouchers and i dont get paid on time then the parents are liable for late charges. That might sound harsh but i have bills to pay and if there was a problem with the voucher company then the parent would have to take it up with them.

**yummymummy_2006** · 22-02-2008, 10:06 PM

I'll have to see what happens and hopefully I won't get messed about by parents and i will mention in my policies about vocuhers and tax xredits ect.
I already have two neighbours interested and asking for places for their little boys when I'm up and running, just hoping that arrangement goes well with me being very friendly with them and living so close (one next door and other next door but 2)

**berkschick** · 22-02-2008, 10:24 PM

I only have 1 parent who gets tax credit and her Daughter is only with me 5 hours a week so I insisted on payment in advance still.

I spoke to her today and felt a bit bad as she said she had spoken to the bank and go an overdraft to cover her while tax credit sort it out for her.

But I have to start as I mean to go on!