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

lisa.89

mildred1978 wrote: »

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.

I know its opening a can of worms but as I have said, she has not gone out to work but instead stayed home to look after our child so we have toi pay the going rate to make it worth her while.. actually less than nursery charges.

mildred1978

lisa.89 wrote: »

I know its opening a can of worms but as I have said, she has not gone out to work but instead stayed home to look after our child so we have toi pay the going rate to make it worth her while.. actually less than nursery charges.

Then she should be registered as self employed and filling out a tax return!!!! Odds are she won't actually have to pay any tax but she should still be doing things properly.

lisa.89

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!!!

Its an 'informal agreement' and a family arrangement, she is not a paid child minder - its a 'gift'. Look, I know you all have your opinions on this matter but the fact is that the IP for my IVA was 100% happy with this agreement and it is what it is, which I am hoping OR will also accpet. If not, then we will cross that bridge when the time comes.

lisa.89

mildred1978 wrote: »

Then she should be registered as self employed and filling out a tax return!!!! Odds are she won't actually have to pay any tax but she should still be doing things properly.

If (and if) this is needed, I will advise her to do so. I will look into this further..

lisa.89

Just had a quick look up on internet and as it stands at the moment - Close relatives are exempt from the childminding and day care regs and can care for their relatives children and get paid (money or gifts). However to access childcare vouchers or childcare element of tax credits you have to use a registered provider. We DO NOT get tax credits.

mildred1978

lisa.89 wrote: »

Just had a quick look up on internet and as it stands at the moment - Close relatives are exempt from the childminding and day care regs and can care for their relatives children and get paid (money or gifts). However to access childcare vouchers or childcare element of tax credits you have to use a registered provider. We DO NOT get tax credits.

Im not debating any of that.

Registering as a self employed person for tax purposes isn't the same as registering as a childcare provider.

You pay your MIL not to work for anyone else so that she can look after your child. That is not a gift in terms of tax revenue. Would you be giving her £3600 per year if she didn't mind your child?

lisa.89

mildred1978 wrote: »

Im not debating any of that.

Registering as a self employed person for tax purposes isn't the same as registering as a childcare provider.

You pay your MIL not to work for anyone else so that she can look after your child. That is not a gift in terms of tax revenue. Would you be giving her £3600 per year if she didn't mind your child?

Its a difficult one and this will be something that we have to look into.. Anyways thanks for the comments and advice but I just need advice on my SOA now as we could go on all day about this subject!

Thanks

HappyMJ

lisa.89 wrote: »

Its a difficult one and this will be something that we have to look into.. Anyways thanks for the comments and advice but I just need advice on my SOA now as we could go on all day about this subject!

Thanks

How many miles do you do in the car? £217 a month is quite high. Normally you would use 18 pence a mile for a medium car. What size engine and fuel does the car use? Assuming a medium car that would get you 14,500 miles per year. Can this be proven by showing the mileage on the MOT's a year apart showing the difference and by showing fuel receipts? You said your partner only does 100 miles so it doesn't add up as that is only 5,200 miles per year.

I would probably base the SOA on only having 1 car between you and you driving your partner to work on the days when you want/need the car.

mildred1978

HappyMJ wrote: »

How many miles do you do in the car? £217 a month is quite high. Normally you would use 18 pence a mile for a medium car. What size engine and fuel does the car use? Assuming a medium car that would get you 14,500 miles per year. Can this be proven by showing the mileage on the MOT's a year apart showing the difference and by showing fuel receipts? You said your partner only does 100 miles so it doesn't add up as that is only 5,200 miles per year.

I would probably base the SOA on only having 1 car between you and you driving your partner to work on the days when you want/need the car.

While I agree, doesn't he start work at 3:30am?

lisa.89

HappyMJ wrote: »

How many miles do you do in the car? £217 a month is quite high. Normally you would use 18 pence a mile for a medium car. What size engine and fuel does the car use? Assuming a medium car that would get you 14,500 miles per year. Can this be proven by showing the mileage on the MOT's a year apart showing the difference and by showing fuel receipts? You said your partner only does 100 miles so it doesn't add up as that is only 5,200 miles per year.

I would probably base the SOA on only having 1 car between you and you driving your partner to work on the days when you want/need the car.

Thanks, well at mo I give hime £30 per week for petrol and he is ALWAYS on the red, drives me mad!! so, if we allowed a little more, maybe £35 a week, this would work. We have got 2 x years worth of MOT's as got car a couple years ago. Its a renault megane scenic estate 1.6 engine.

I would love to drive him to work on days I need car but he starts at 3.30am and don't think my son would be happy to be woken at that time of day!

So if SOA is without car.. what do I do with 2nd car?? Should I sell before BR and use towards my move and any left over list as cash asset??

I just don't want to shoot myself in foot and let it go if it could be allowed... so hard.....