Paying grandparent for childcare can they claim working tax credits

bonehead903028402

I have recently separated from my partner so am now a single mum to a 1 year old.

I am looking to return to work and have found a job 20 hours a week over 3 days,

My mum works 30 hours 5 days a week and claims working tax credits.

My mums job is flexible so I was going to ask her if she could loom after my son 2 of the days I work and pay her.

I was wondering if she would count as self employed if I pay her and could there for use those hours (16) towards the 30 she needs to do to claim working tax credits.


Eg work 16 hours for me caring for my child then do 3 days In her job her normal working hours bring her over 30 hours a week.

Also if this was the case would I be required to pay her national minimum wage per hour or could we arrange any amount between ourselves eg £200 a month regardless of hours

missbiggles1

You can only do this if your mother's a registered childminder and looks after other children in her own home.

missbiggles1

blondebubbles wrote: »

That only applies to if the OP wants to claim the childcare element of WTC.

The OP is asking of her mother can include this as remunerative work in her own claim. To be honest I am not sure if tax credits would accept this as genuine. Self employment is one of the areas they are investigating most but can't see any guidance for this scenario.

OP - national minimum wage does not apply to the self employed.

Thank you - I made an assumption not backed up in the post.:o

Indie_Kid

missbiggles1 wrote: »

Thank you - I made an assumption not backed up in the post.:o

I made the same assumption.

PasturesNew

Self-employment might not carry a NMW criteria, but you are then hit with the concept of whether it's legitimately self-employment (as decided by HMRC) or whether she's employed. It'd be difficult to tick all the "self employed" boxes on the HMRC site in this instance.

bonehead903028402

Ok all seems a bit complicated.


Will probably just look into other childcare options

Thanks for the replies

pmlindyloo

I really do not see how this can work.

So that your mum doesn't lose out on income you would have to pay her an amount per month which would make up for her lost wages and her working tax credits. That would be more than the NMW obviously.

I do not think that this would count as being self employed either. Then there is the matter of paying tax on her earnings and NI contributions if she didn't pay these on her 'normal job'.

Far better for you to find a registered child minder and claim child care costs if appropriate.

Mojisola

If your Mum is willing to do child care for you, has she thought about registering as a child minder and taking another couple of children as well?

Almost-free

Mojisola wrote: »

If your Mum is willing to do child care for you, has she thought about registering as a child minder and taking another couple of children as well?

If she is going to be paid then she MUST register as a childminder- which these days requires courses and can take some time. I have a friend who is 9 months into the process and getting desperate as she has two children to start looking after in September and she still hasn't received her certification.

There is also insurance to consider.