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  • FIRST POST
    • nirish
    • By nirish 8th Jan 17, 5:59 PM
    • 264Posts
    • 39Thanks
    nirish
    Paying Grandparents for Childcare
    • #1
    • 8th Jan 17, 5:59 PM
    Paying Grandparents for Childcare 8th Jan 17 at 5:59 PM
    This probably isn't in the right section but I was struggling to find an appropriate one.

    We will shortly be paying a grandparent £1000 a month in return for childcare.

    Despite trying to do some reading I am struggling to understand the tax / national insurance consequences of this if there are any at all.

    Is it possible to simply gift 12k a year or is there a downside to this?
Page 1
    • Savvy_Sue
    • By Savvy_Sue 8th Jan 17, 8:15 PM
    • 37,484 Posts
    • 33,793 Thanks
    Savvy_Sue
    • #2
    • 8th Jan 17, 8:15 PM
    • #2
    • 8th Jan 17, 8:15 PM
    Where are they providing the care, in your home or in theirs? If in theirs, I believe they have to register as a childminder with Ofsted. But my information may be out of date.

    Are you employing them? If you are, then you need to register as an employer with HMRC, and they will be entitled to paid holidays and statutory sick pay. Being an employer at this kind of level isn't that difficult, tbh, and HMRC have lots of helpful information for new, small employers.

    Or are they going to be self-employed, which is the normal situation for childminders? In which case, they'll have to do an annual self-assessment and pay their own tax and NI. They wouldn't be paid for holidays in that situation.

    At their end, what other income do they have? If none, then they'll have very little tax or NI to pay, whichever way round it is.

    And finally, what's your backup position if they're ill, or something else doesn't work out?
    Still knitting!
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    • Spendless
    • By Spendless 8th Jan 17, 9:59 PM
    • 19,379 Posts
    • 31,361 Thanks
    Spendless
    • #3
    • 8th Jan 17, 9:59 PM
    • #3
    • 8th Jan 17, 9:59 PM
    My understanding of it is that Grandparents do not have to be registered as childminders to receive payment but they do if the parent/s are claiming tax credits/childcare vouchers to pay for the care. The Grandparents would also need to be caring for another (non-related) child not just grandchild/ren.

    http://www.grandparentsplus.org.uk/providing-childcare
    • Carol555
    • By Carol555 12th Jul 17, 9:59 AM
    • 1 Posts
    • 0 Thanks
    Carol555
    • #4
    • 12th Jul 17, 9:59 AM
    Grandparent childminder
    • #4
    • 12th Jul 17, 9:59 AM
    Im an ofsted registered childminder. I look after my grandson also i looked after other none relatives. I was told i could only childmind my own grandchild if i chilmind none relatives. My none relative children are now leaving my setting. What do i now do with my grandchild who i mind. My daughter would have to give up work as my granchild has health issues. What happens
    • kingfisherblue
    • By kingfisherblue 12th Jul 17, 5:24 PM
    • 7,170 Posts
    • 15,446 Thanks
    kingfisherblue
    • #5
    • 12th Jul 17, 5:24 PM
    • #5
    • 12th Jul 17, 5:24 PM
    Im an ofsted registered childminder. I look after my grandson also i looked after other none relatives. I was told i could only childmind my own grandchild if i chilmind none relatives. My none relative children are now leaving my setting. What do i now do with my grandchild who i mind. My daughter would have to give up work as my granchild has health issues. What happens
    Originally posted by Carol555
    It's usually best to start your own thread if you have a specific question.

    Are you still prepared to childmind for non-relatives? Are yo currently advertising for more children?
    • Savvy_Sue
    • By Savvy_Sue 12th Jul 17, 8:05 PM
    • 37,484 Posts
    • 33,793 Thanks
    Savvy_Sue
    • #6
    • 12th Jul 17, 8:05 PM
    • #6
    • 12th Jul 17, 8:05 PM
    Also I think the rules may have changed so that you don't any longer have to mind non-related children. But I'm not sure.

    You'd get a definitive answer from Ofsted if you know how to contact them, or from your local authority Early Years Team, or from PACEY. Link to contact EYT via PACEY, and EYT would help you advertise if you do need to take other children.
    Still knitting!
    Completed: 1 adult cardigan, 3 baby jumpers, 1 shawl, 2 pairs baby bootees,
    1 Wise Man Knitivity figure, 1 sock ...
    Current projects: 1 shawl, t'other sock (just about to turn the heel!)
    • jackyann
    • By jackyann 13th Jul 17, 6:37 PM
    • 3,035 Posts
    • 5,754 Thanks
    jackyann
    • #7
    • 13th Jul 17, 6:37 PM
    • #7
    • 13th Jul 17, 6:37 PM
    To answer the first question, there are no rules about grandparents looking after children, unless the parent is claiming some sort of tax credit / using vouchers as Spendless said. The idea is that the GP can do as they like BUT if public money is involved, then they need to demonstrate that they adhere to Early Years Standards.

    So, if OP is not going to be claiming any of those, they can just hand over money as suits the family.
    The exception, as I understand it, is the question of NI credits. If both parents (or a single parent)is paying NI, then they can transfer their Home Responsibility NI credit to the grandparent if relevant - that is the grandparent would otherwise be in a job where they would pay NI(you can look this up on gov.uk)

    Carole - I think you need to check, as Savvy Sue suggested (I think she is correct,). Your local Children's Centre could probably also help.
    As your grandchild has health issues, there may be specific help available as slightly different rules apply to families with ill or disabled children. These people have good information: https://www.cafamily.org.uk/
    I hope you can sort something out.
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