Using a close relation as a childminder

Stu666

In England, is it possible to claim help for childcare costs through tax credits by having a close relation register as a childminder/nanny?

I am receiving conflicting information so far, some say yes it is doable providing the child is looked after away from home, others say no, the relation would have to childmind unrelated children as well.

Anybody have the definitive answer?

Spendless

I've only ever seen the rules relating to a Grandparent who has to be registering as a CM and minding at least one other (non related) child.
It is my guess that these rules would also apply to another close relative eg Aunt.

This link any help?

http://www.hmrc.gov.uk/taxcredits/start/who-qualifies/children/approved-childcare.htm#6

Stu666

Hi Spendless, that link is an example of the confusion I am coming across. If we look at the following section:

If your child is looked after by a relative

You can't usually claim tax credits for childcare provided by relatives even if they're registered or approved. A relative could be your child's:

parent
grandparent
aunt or uncle
brother or sister
step-parent

The exception to this is when your child is cared for by a relative who is either:

a registered childminder who cares for your child outside of your child's own home

a childcare provider, approved under a Home Child Care Providers Scheme in Wales or Northern Ireland, who cares for your child outside of your child's own home - but they must also care for at least one other child who's not related to them

I've underlined the bits I'm not sure about. Are they saying that yes, a relative can look after your child as long as they are a registered childminder and the care is provided away from the childs home?

karenx

But surly your relative should be willing to look after the child unpaid?? Or pay for it yourself.

When I asked about my aunty looking after my son when he was little I was told yes it can be done as long as she looks after someone else neither of us are related to also. She is a foster carer and registered with ofsted

Stu666

karenx wrote: »

But surly your relative should be willing to look after the child unpaid?? Or pay for it yourself.

When I asked about my aunty looking after my son when he was little I was told yes it can be done as long as she looks after someone else neither of us are related to also. She is a foster carer and registered with ofsted

Karen, the situation is we have a child in nursery with much of the fees covered by the tax credit childcare component. Our relation is currently looking for work having recently been made redundant and has offered to childmind. Obviously they would need reimbursing as they cannot live on nothing. The idea is we take our child out of nursery to be cared for by our relative once they are regsitered.

Your experience with your son is typical of stories I'm hearing from other people, however someone has told me the law has recently changed(?) and the HMRC info above does make it sound like the relative doesn't have to look after unrelated children.

bestpud

I think they need to be set up to take other children, at the very least, or it would be viewed as a way of claiming benefits they (or you) would otherwise not be entitled to.

Whether they actually have to take another child, I don't know, but they do need to advertise etc in the normal way, as they should be setting up a business rather than just registering to have your child.

That's my understanding anyway.

It's quite a long process to register though, so nothing would happen anytime soon.

karenx

The relative needs checks done on them and their house. crb etc too. tjey also need to register as self employed. Its not quite as simple as phoning up somewhere or filling out a form.

Stu666

karenx wrote: »

The relative needs checks done on them and their house. crb etc too. tjey also need to register as self employed. Its not quite as simple as phoning up somewhere or filling out a form.

I'm not saying it is simple Karen. We have looked into the registration process and we are comfortable with that. I'm sell employed myself, so again, not a major issue giving them a hand with that.

The aim of this topic really is to find out whether it is possible for our relative to be reimbursed before we embark upon the registration process.

Looking at the HMRC info it does seem to suggest a relative can look after the child as long as it is done away from the childs home. The only bit about having to look after other unrelated children comes at the end of the section which I'm not sure applies?

a childcare provider, approved under a Home Child Care Providers Scheme in Wales or Northern Ireland, who cares for your child outside of your child's own home - but they must also care for at least one other child who's not related to them

Marisco

If you trust the relative to look after your child, why do they need to be registered?? There is nothing stopping you paying them, who will know, if you don't tell anyone? I'm sure a lot of people do that:)

DX2

Your relative needs to be an approved childminder and if IIRC look after another child aswell as your own.

DX2

Marisco wrote: »

If you trust the relative to look after your child, why do they need to be registered?? There is nothing stopping you paying them, who will know, if you don't tell anyone? I'm sure a lot of people do that:)

Because tax credits won't pay for the childminder