Employing a childminder

Hi,

We are planning to have a friend of my wife start to look after our 6 month old while he goes back to work.

The friend has some childminding qualifications though not registered yet, my main question is, as we are paying her for example 8 hours per day mon to fri and she will often be staying in our spare room as she can't drive to go back to her parents, where do we start with paying tax and NI for her, and will there be any other issues to consider?
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Comments

  • scotty1971
    scotty1971 Posts: 1,732 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    if she is self employed she will be able to arrange to pay her own tax and ni
  • She isn't self employed
  • princessdon
    princessdon Posts: 6,902 Forumite
    Snowball1 wrote: »
    She isn't self employed

    She needs to be :)
  • She needs to be registered and she needs to be self employed unless you set up a company and employ her as an employee and take on all the expenses & costs associated with that.

    Anything else and it's tax avoidance plus illegal to leave your child with an unregistered child minder.
  • consultant31
    consultant31 Posts: 4,814 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    If she's looking after the baby in your home as opposed to her own home, she's a nanny/au pair - childminders have to be registered but a nanny/au pair doesn't.

    Take a look at this http://www.babycentre.co.uk/baby/workandchildcare/nannieslegalresponsibilities/
    I let my mind wander and it never came back!
  • paddedjohn
    paddedjohn Posts: 7,512 Forumite
    Part of the Furniture
    She needs to be registered and she needs to be self employed unless you set up a company and employ her as an employee and take on all the expenses & costs associated with that.

    Anything else and it's tax avoidance plus illegal to leave your child with an unregistered child minder.

    Can you give a link to your last statement please? As far as I know I can leave my kids with whoever I want.
    Be Alert..........Britain needs lerts.
  • Hmm71
    Hmm71 Posts: 479 Forumite
    Snowball1 wrote: »
    Hi,

    We are planning to have a friend of my wife start to look after our 6 month old while he goes back to work.

    The friend has some childminding qualifications though not registered yet, my main question is, as we are paying her for example 8 hours per day mon to fri and she will often be staying in our spare room as she can't drive to go back to her parents, where do we start with paying tax and NI for her, and will there be any other issues to consider?

    Will you need to claim the childcare element of tax credits? If so the friend will need to be registered.
  • Dunroamin
    Dunroamin Posts: 16,908 Forumite
    If she's looking after the baby in your home as opposed to her own home, she's a nanny/au pair - childminders have to be registered but a nanny/au pair doesn't.

    Take a look at this http://www.babycentre.co.uk/baby/workandchildcare/nannieslegalresponsibilities/

    You can't claim tax credits for unregistered childcare and in this situation she'd be an employee, not self employed. However, I agree that she's be a nanny/mother's help, not a child minder.
  • Marisco
    Marisco Posts: 42,036 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    paddedjohn wrote: »
    Can you give a link to your last statement please? As far as I know I can leave my kids with whoever I want.

    You can, yes, but if you are going to be claiming for childcare, then they have to be kosher, i.e my daughter could have me looking after my grandkids and just bung me a few quid for it. But if she claims childcare benefit to pay for it, then I'd have to be a registered childminder. Otherwise people would be leaving their kids with relatives and get the taxpayer to pay for it, and theoretically "make" money out of it!
  • Mojisola
    Mojisola Posts: 35,571 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    She needs to be :)

    If she only has one client and her hours of work are set by that client, she can't register as self-employed. She's an employee.
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