Childminding and Income support

bubsy4444

Hi All,

I have recently qualified as a childminder, I am on income support...... Can I ask I know that you deduct 2 thirds off what you make for benefit purposes but I have the following questions.

1. Do you then deduct your expenses after the 2 thirds have been taken off? 2. If one month you get paid for say 10 hours because the parent is late and the following week you get paid for 5, do you have to call IS up every week to tell them? As what you earn can change weekly. I have been cm for a week now, will I get in trouble for not telling them as I wanted to tell them next week when I attend a meeting.

Thanks so much for your help:)

NYM

bubsy4444 wrote: »

Hi All,

I have recently qualified as a childminder, I am on income support...... Can I ask I know that you deduct 2 thirds off what you make for benefit purposes but I have the following questions.

1. Do you then deduct your expenses after the 2 thirds have been taken off? 2. If one month you get paid for say 10 hours because the parent is late and the following week you get paid for 5, do you have to call IS up every week to tell them? As what you earn can change weekly. I have been cm for a week now, will I get in trouble for not telling them as I wanted to tell them next week when I attend a meeting.

Thanks so much for your help:)

The two thirds is in lieu of expenses.

pmlindyloo

From the decision maker's guide

27350 A child minder is a person who engages in a contract for services to care for another
person’s child in return for payment. Most child minders
1. work from their own homes and
2. are registered with the LA and
3. are restricted to the number of children they care for at any one time.

27351 To calculate a child minder’s normal weekly earnings the DM should
1. determine the assessment period in the normal way and
2. calculate the gross receipts for that period and
3. calculate the chargeable income as one third of the gross receipts during the
assessment period but make no deductions for business expenses and
4. calculate a deduction for
4.1 income tax and
4.2 SS/NI contributions and
4.3 half of any premium for a personal pension scheme and
5. deduct any disregard.

Note: See DMG 20466 for the remunerative work rules for childminders.
1 JSA Regs, reg 102(5)(b); IS (Gen) Regs, reg 39(3)(b)

Example
Fleur is a S/E child minder who is in receipt of IS. Her assessment period is 13
weeks. The gross receipts for that period are £1,280.
The DM determines
1. that no expenses should be deducted from the gross receipts and
2. that the chargeable income is £426.67 (1/3 of £1,280) and
3. the income tax, SS/NI contributions and premiums that are to be deducted
from the chargeable income

bubsy4444

Thank you both for your replies......