Loophole in Childcare Voucher Scheme

TheWaltons_3

Oh dear... I don't think there is a loophole then!

tigtag02

Oldernotwiser wrote: »

You can only use childcare vouchers to pay for care by a relative of the child if they are;
a. registered childminders
b. not providing care in the child's own home.

I think this is the pertinent point!! Seems there is no loophole really unless they live apart!

tigtag

tipmeister

Thanks for the info everyone. It's very disappointing that after checking with my employer and the voucher scheme administrators (twice) nobody picked this up. I was extremely clear about my circumstances and have been advised that I am acting within the rules of the scheme. Maybe the admin's at the voucher provider do not have enough in-depth knowledge about the basis of the scheme?

Oldernotwiser

You may well be right that they don't know what they're doing but it's not a question of in depth knowledge; I found this out though Google!

TheWaltons_3

tipmeister wrote: »

Thanks for the info everyone. It's very disappointing that after checking with my employer and the voucher scheme administrators (twice) nobody picked this up. I was extremely clear about my circumstances and have been advised that I am acting within the rules of the scheme. Maybe the admin's at the voucher provider do not have enough in-depth knowledge about the basis of the scheme?

I mentioned this to my childminder and she said that it is OK!

Although she wouldn't do it.. her kids are all in school

Anthony_MK

I don't see why a mum should be penalised for setting up her own business to look after kids, including her own at her own home. My girlfriend, a registered child minder, is about to take on 2 other children (4 inc ours) and I was intending to get the childcare vouchers to pay her for our two. Surely we want people getting out and working rather than getting benefits (not that we are entitled to any!).

Because of the high cost of full time childcare, she cannot afford to go to work full time (she'd be working to pay childminder!) as an accounts assistant so she thought she would do this to make a decent living and to spend the formative years of our children at home with them.

I am going to double check this, I dont want to call it a loophole, because it makes it look underhand, but I dont see why I should be forced to look elsewhere for childcare, or my g/f made to work away from home, to get this benefit.

Spendless

It's because people do not get paid to look after their own children. In the case of a childminder though her own children restrict the numbers she can mind as they count in the total.

The only 'loophole' I can think of is if you send your children to be looked after by another minder claiming the money from tax credits/childcare vouchers so you can take additional children on, maximising your income. Of course this defeats the object why many people become childminders in the first place.

sarahb

I use childcare vouchers to pay my mum for looking after my daughter - she is a registered childminder (although she has never looked after any other children) and looks after her at her house rather than mine and so meets the requirements.

At her last local authority inspection my mum was told that what we are doing is an abuse of the system but the inspector was unable to explain why so I reached the conclusion that was just her personal view rather than having any basis in fact.

Anyone considering have a family member who previously looked after a child on a more informal basis register as a child minder to take advantage of childcare voucher savings should consider the relative's tax position - ie if they were previously being paid cash in hand and not declaring it to the tax man etc they may not welcome payment by childcare vouchers. Also there are costs associated with becoming a registered childminder - registration (and inspection ?) fees and insurance being the two I can remember off the top of my head.

tigtag02

Anthony_MK wrote: »

I don't see why a mum should be penalised for setting up her own business to look after kids, including her own at her own home. My girlfriend, a registered child minder, is about to take on 2 other children (4 inc ours) and I was intending to get the childcare vouchers to pay her for our two. Surely we want people getting out and working rather than getting benefits (not that we are entitled to any!).

Because of the high cost of full time childcare, she cannot afford to go to work full time (she'd be working to pay childminder!) as an accounts assistant so she thought she would do this to make a decent living and to spend the formative years of our children at home with them.

I am going to double check this, I dont want to call it a loophole, because it makes it look underhand, but I dont see why I should be forced to look elsewhere for childcare, or my g/f made to work away from home, to get this benefit.

Surley this is just as simple as:

You dont get paid to look after your own kids!!!!

tigtag

Spendless

sarahb wrote: »

I use childcare vouchers to pay my mum for looking after my daughter - she is a registered childminder (although she has never looked after any other children) and looks after her at her house rather than mine and so meets the requirements.

At her last local authority inspection my mum was told that what we are doing is an abuse of the system but the inspector was unable to explain why so I reached the conclusion that was just her personal view rather than having any basis in fact.

I actually don't know the answer for childcare vouchers but if you are claiming the childcare element of tax credits and paying a grandparent who is also a registered childminder then the grandparent has to ALSO be looking after one un-related child.

ETA - I found this info that confirms what I'm saying about childcare element of tax credits
http://www.litrg.org.uk/news/latest.cfm?id=235

I think either the inspector was confusing the rules with the cctc system or s/he
was correct but in that case they should have been able to explain why. I suggest you contact your voucher company for clarification.