Final SOA - Any advice would be great - thanks :)

lisa.89

PippaGirl wrote: »

No they are exempt from the need to be registered on the basis of their close relationship and they are allowed to be paid. But you can't claim your child care costs back through tax credits unless they are registered.

Actually, that is a good point, as you would be able to claim back much of the cost of a registered child minder through tax credits, not doing so and paying your Mum Lisa is a massive difference in price and maybe it will be an issue.

Can i just point out that tax credits threshold has changed and I have already looked at this and we cannot claim for child care, whether it be for mother in law or child minder - we earn too much to claim.


With regards to car insurance -

I know its alot and it seems to go up every year (haven't had an accident - touch wood) either..

Policy 1 is in my name with husband using for work and named driver - £65 plus £15 RAC per month.

policy 2 - Is again in my name and I use for work - £45 per month and that is not even fully comp!

I have been driving for 7 years and hubby 6 years - we do shop around too..

I keep insurances in my name as it works out cheaper as previously tried it in husbands name..

lisa.89

rising_from_the_ashes wrote: »

Agree with the above but £300 / month is not a few quid and most arrangements like this that I know of, tend to be doing a big sm shop for them etc

AFAIK Grandparents are exempt from being registered as childminders but only if they don't receive payment

Can I also say that the Insolvency Practioner for our IVA agreed to us paying mother in law and it was not questioned at all - they said it was our choice. This is allowed and there are no rules being broken here.

I know that she is family but she needs an income and this is her 'job' if you like. Don't want to take advantage.

lisa.89

PippaGirl wrote: »

I know what you mean about not wanting to tell people, I have told no one and don't want anyone to know either. It is hard!

I know, we even find it hard saying the word to each other..

At the moment, I would be mortified if anyone I knew found out.

mildred1978

lisa.89 wrote: »

.

I know that she is family but she needs an income and this is her 'job' if you like. Don't want to take advantage.

Hope she's registered with HMRC and doing a self assessment each year then.

Not to mention declaring it for any benefits she's claiming.

HappyMJ

mildred1978 wrote: »

Hope she's registered with HMRC and doing a self assessment each year then.

Not to mention declaring it for any benefits she's claiming.

Child minders can claim expenses to reduce profit to nearly nil anyway. Besides payments between family members are a gift and not taxed.

lisa.89

mildred1978 wrote: »

Hope she's registered with HMRC and doing a self assessment each year then.

Under threshold for tax

Not to mention declaring it for any benefits she's claiming.

She does not claim any benefits - she lives off this and her late husbands small pension. She has some savings in bank to see her through retirement.

This is all above board and and honest informal agreement.

mildred1978

lisa.89 wrote: »

She does not claim any benefits - she lives off this and her late husbands small pension. She has some savings in bank to see her through retirement.

This is all above board and and honest informal agreement.

You think I can earn £8k per year without telling anyone because it's under the personal allowance, do you? Would you be giving her £3600 per year of she weren't looking after your child? She's working for you, cash in hand, and not declaring it!!!

HappyMJ

mildred1978 wrote: »

You think I can earn £8k per year without telling anyone because it's under the personal allowance, do you? Would you be giving her £3600 per year of she weren't looking after your child? She's working for you, cash in hand, and not declaring it!!!

Who cares? It is not the OP's responsibility.

mildred1978

HappyMJ wrote: »

Child minders can claim expenses to reduce profit to nearly nil anyway. Besides payments between family members are a gift and not taxed.

Not when in return for a service, they aren't.

And the MIL isn't a childminder. Can't have it both ways.

mildred1978

HappyMJ wrote: »

Who cares? It is not the OP's responsibility.

Well, perhaps if people cared a bit more there wouldn't be such widespread benefit and tax fraud!!

Pretty sure the employer can be held responsible too. The MIL presumably can't transfer the childcare to another person at will, so she's not truly self employed. Big can of worms here. There's no way it costs the MIL £35 a day to look after her grandson.