Au Pairs

clearingout

Mad set of questions for you now!

I am a single parent to 3 small children and to help me manage my work commitments, I am seriously considering employing an au pair. This would reduce my child care costs by over half what they are now and would mean I am not running around like a thing possessed trying to be in the right place at the right time.

Obviously, I would lose my single person discount on the Council Tax but as I am on a low wage, I am reliant on Tax Credits to manage. I am assuming that as employing an au pair is a legal, recognised form of childcare, I am not going to come up against problems with Tax Credits in terms of me 'living with a partner'. I ask in particular because I am seriously considering employing a male au pair (my children's father is entirely absent and I have interviewed someone who I think would be marvellous with them and whilst it's a poor substitute for a dad, it's at least a positive male influence).

Assuming I take reasonable care to protect myself - transferring wages to bank account marked as 'salary' or something like that (possibly getting some kind of written receipt from them?) - is there anyway at all that Tax Credits can decide that I am living with someone as a partner (male or female), am sharing living expenses or some other such nonsense which could impact on my ability to pay my bills?

Any advice or pointers, particularly from someone who's been there/done that, would be much appreciated.

LL30

Are au pairs OFSTED registered? Pretty sure that in order to be able to claim childcare cost help, the provider must be OFSTED registered.

clearingout

thanks LL30. that's not my question but yes, it is possible to get an au pair ofsted registered to be able to claim childcare costs.

my worry is it looking like I'm living with someone (particularly if I went down the route of employing someone of the opposite sex) and I'm looking for help in making sure that I cover my back appropriately.

skylight

Au Pairs are not legal recognised childcare.

They are live-in "members of the family" that you pay "pocket-money" to. You cannot claim tax credits for them, nor can you pay them marking it salary; because its not. If you want them ofstead registered thats too much of a problem.

There are lots of Au Pair websites so take a look at those.


You can live with someone and it not be regarded as couple but two seperate households. You need to ensure that all bills/lifestyles etc are seperate (and in this arrangement they would be).

I like the idea of an au pair for simplicity in childcare and basic household duties!

clearingout

thanks skylight. I have looked at the Ofsted registration issue and am satisfied it's possible to get an au pair registered for tax credit purposes although it would require a commitment on their part and would be a process best suited to someone who was wanting to work at the job for a few years, I think. Essentially they have to make a voluntary registration, take the same course offered by Local Authorities that child minders have to take before registering and then there's a faff with police registration and 'letters of good conduct' from their embassy - apparently takes around 3 months to complete. Once completed, they are registered childcare. There are plenty of au pairs about in the UK looking for their next job (which is what has pushed the issue for me, if I'm honest) and the chap I am looking at already has the registration so I know it's possible (I suspect most people using au pairs are above income levels to be receiving tax credit support).

Even without the registration, I am no worse off than I am now but I have someone available to deal with childcare for me which is the plus point of all of this!!!! I have talked myself into it!

Signed receipt for 'pocket money' then?

LL30

clearingout wrote: »

thanks LL30. that's not my question but yes, it is possible to get an au pair ofsted registered to be able to claim childcare costs.

my worry is it looking like I'm living with someone (particularly if I went down the route of employing someone of the opposite sex) and I'm looking for help in making sure that I cover my back appropriately.

Sorry, I understand that it wasn't directly your question, just merely pointing out that for your plan to work, it would be useful if you didn't fall at the first hurdle. Being OFSTED registered isn't just a case of ringing up and getting them registered. It's a lengthly process which involves them evidencing their 'lesson planning' and meeting various different criteria. I've never heard of au pairs being OFSTED registered, hence my original question.

LL30

clearingout wrote: »

thanks skylight. I have looked at the Ofsted registration issue and am satisfied it's possible to get an au pair registered for tax credit purposes although it would require a commitment on their part and would be a process best suited to someone who was wanting to work at the job for a few years, I think. Essentially they have to make a voluntary registration, take the same course offered by Local Authorities that child minders have to take before registering and then there's a faff with police registration and 'letters of good conduct' from their embassy - apparently takes around 3 months to complete. Once completed, they are registered childcare. There are plenty of au pairs about in the UK looking for their next job (which is what has pushed the issue for me, if I'm honest) and the chap I am looking at already has the registration so I know it's possible (I suspect most people using au pairs are above income levels to be receiving tax credit support).

Even without the registration, I am no worse off than I am now but I have someone available to deal with childcare for me which is the plus point of all of this!!!! I have talked myself into it!

Signed receipt for 'pocket money' then?

Interesting stuff, does this means they'd be subjected to the OFSTED 3 yearly checks as well then? Or would it be for each new family?

clearingout

LL30 wrote: »

Interesting stuff, does this means they'd be subjected to the OFSTED 3 yearly checks as well then? Or would it be for each new family?

Off the top of my head, I think it was annual....not sure! but yes, it's interesting and possible although may be more trouble than it's worth. However,it's a useful add-on to have if you're intending to au pair for a few years so I am sure some will see it as a worthwhile faff!

So are we confident that should a nosy neighbour decide I'm shacked up with a chap half my age and report me for fraud, it'll be OK?!!!

LL30

clearingout wrote: »

Off the top of my head, I think it was annual....not sure! but yes, it's interesting and possible although may be more trouble than it's worth. However,it's a useful add-on to have if you're intending to au pair for a few years so I am sure some will see it as a worthwhile faff!

So are we confident that should a nosy neighbour decide I'm shacked up with a chap half my age and report me for fraud, it'll be OK?!!!

Lol, you'll be the talk of your street! The OFSTED process is a nightmare, lots of form filling etc, but a useful thing for an au pair to have and in turn, useful for you. The checks are usually unannounced in nurseries but they give you 3 days notice for schools - here's hoping au pairs get notice so you're not caught in your PJs

FBaby

What am confused about is that to be an 'au pair', hence not registered as self-employed, you can't receive a salary. You would get pocket money. Surely if that pocket money becomes such that it is more than 'pocket money', they would be expected to register as self-employed and pay tax? If all you intend to give is pocket money, are you really going to get anything back but a few pounds back from them? I guess I just don't understand why you would want to get them registered officially to claim the childcare element of the tax credits, although you would still be entitled to the same Child Tax credits and some working tax credits if your salary is very low.

In terms of protecting yourself in regards to living as a couple, I would just keep evidence of everything. How did you find him, did you put an advert anywhere, if they were recommended, get a letter from whom ever did. Do some kind of -useless legally-contract, but that would prove that it is a professional arrangement, evidence of the pocket money, evidence when he goes home to visit his family (likely to be the case I would think) etc... Let them come to you if they want to investigate and show all your evidence then.

clearingout

FBaby wrote: »

What am confused about is that to be an 'au pair', hence not registered as self-employed, you can't receive a salary. You would get pocket money. Surely if that pocket money becomes such that it is more than 'pocket money', they would be expected to register as self-employed and pay tax? If all you intend to give is pocket money, are you really going to get anything back but a few pounds back from them? I guess I just don't understand why you would want to get them registered officially to claim the childcare element of the tax credits, although you would still be entitled to the same Child Tax credits and some working tax credits if your salary is very low.

In terms of protecting yourself in regards to living as a couple, I would just keep evidence of everything. How did you find him, did you put an advert anywhere, if they were recommended, get a letter from whom ever did. Do some kind of -useless legally-contract, but that would prove that it is a professional arrangement, evidence of the pocket money, evidence when he goes home to visit his family (likely to be the case I would think) etc... Let them come to you if they want to investigate and show all your evidence then.

it's an interesting point about getting childcare money back through tax credits. It seems there is an official au pair scheme for EU nationals under the age of 27 (not sure how it works if you want to employ someone who isn't EU - haven't got that far with it!) and it's 'pocket money' that is paid, yes. I am guessing lots of cash in hand could be achieved through baby sitting for friends and neighbours, giving language classes etc. - it is this where self employment comes into it and I guess that's not my business - will need to look harder at my responsibilities in that respect. As I am on less than £16k at the moment, I believe I should get 70% of the costs back so at £70 a week vs. almost £200, you can appreciate the difference is enormous, even if I can't manage to get the au pair registered and anything back. The convenience is enormous although obviously there is the loss of privacy and potential problems with homesickness, poor levels of care etc. I am a linguist so intend in the first instance only to employ someone I know I can talk to properly which will hopefully teach me all about the problems and pitfalls and with some more experience we could branch out into other nationalities/languages.

Yes, am advertising and yes will get a reference so will keep copies. I am very much talking myself into this!