Can I Employ My family member

I am looking to employ my family member that lives with me as my PA, for occasional childcare duties and household cleaner instead of paying an external agency.
If I register as an employer is this allowed dispite us living at the same address - my family member is currently entitled to working tax credits

Comments

  • KatrinaWaves
    KatrinaWaves Posts: 2,944 Forumite
    1,000 Posts Second Anniversary Name Dropper
    Are they a parent of these children?

    It seems unlikely you can employ someone as a cleaner of the house they live in too. It seems an obvious fiddle.
  • Djordon wrote: »
    I am looking to employ my family member that lives with me as my PA, for occasional childcare duties and household cleaner instead of paying an external agency.
    If I register as an employer is this allowed dispite us living at the same address - my family member is currently entitled to working tax credits

    Entitled or receiving? Because unless already getting tax credits they can't now claim them.

    Who is funding this care? You won't get childcare support for employing a family member.
  • I currently live between two cities and our current arrangement is that they look after my daughter during the week and I look after her when I am back home on the weekends - unfortunately with the nature of my work there have been several instances when I couldn't make it home to assume my childcare duties often at the very last minute. So I thought that by perhaps employing her formally I can ensure that she is available to look after my child on the weekends.
    I don't have any intention to use any childcare vouchers etc, I wish her to pay her out of my take home pay that I receive from my primary job. But I don't want to disrupt her current benefit entitlements as she will be cutting her weekend hours to ensure she is available for childcare duties.
  • Djordon wrote: »
    I currently live between two cities and our current arrangement is that they look after my daughter during the week and I look after her when I am back home on the weekends - unfortunately with the nature of my work there have been several instances when I couldn't make it home to assume my childcare duties often at the very last minute. So I thought that by perhaps employing her formally I can ensure that she is available to look after my child on the weekends.
    I don't have any intention to use any childcare vouchers etc, I wish her to pay her out of my take home pay that I receive from my primary job. But I don't want to disrupt her current benefit entitlements as she will be cutting her weekend hours to ensure she is available for childcare duties.
    You are carefully avoiding explaining the relationship between this person and the children. Let's cut to the chase - why is this person looking after the children all week, and what are you paying them currently to do that? Because I think this person is the mother or primary responsible carer for the children. You can't employ a parent to look after their own children in their own home. That is plainly ridiculous. Furthermore, if you employ them you don't just get to pay them. You must declare their income, even if they are technically self- employed. That person must be insured for the work that they did, and the property they do it in must be properly insured - and, for childcare purposes, inspected and registered. It is also possible, depending on the circumstances and the local authority, that the person must be able to demonstrate a minimum qualification in childcare, appropriate safeguarding checks, and all the above insurances etc.
  • Marcon
    Marcon Posts: 13,889 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper Combo Breaker
    Djordon wrote: »
    I thought that by perhaps employing her formally I can ensure that she is available to look after my child on the weekends.

    Why do you need to employ 'her' formally to do that? A simple agreement between the pair of you should suffice, with you promising to pay her whatever the pair of you agree on the understanding that she will be available etc etc.
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
  • theoretica
    theoretica Posts: 12,689 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Is she a registered childminder?
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
  • Blatchford
    Blatchford Posts: 601 Forumite
    Marcon wrote: »
    Why do you need to employ 'her' formally to do that? A simple agreement between the pair of you should suffice, with you promising to pay her whatever the pair of you agree on the understanding that she will be available etc etc.
    You surely aren't suggesting that the OP or their "relative" break any one of the dozens of laws or regulations that this response appears to suggest? Income paid as a result of services is still income, potentially taxable and certainly needs to be declared. And can impact on any benefits claimed. That's before any issues hit due to taking payment for childcare services that are potentially not lawfully compliant or insured. And exclusivity - a promise to be available in return for payment- is quite definitely a test of employment, regardless of whether that employment is lawful or not. This is a disaster waiting to happen.
  • Brynsam
    Brynsam Posts: 3,643 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper Combo Breaker
    Blatchford wrote: »
    You surely aren't suggesting that the OP or their "relative" break any one of the dozens of laws or regulations that this response appears to suggest? Income paid as a result of services is still income, potentially taxable and certainly needs to be declared. And can impact on any benefits claimed. That's before any issues hit due to taking payment for childcare services that are potentially not lawfully compliant or insured. And exclusivity - a promise to be available in return for payment- is quite definitely a test of employment, regardless of whether that employment is lawful or not. This is a disaster waiting to happen.

    Lordy, but some people go OTT. An informal agreement to pay a spot of cash between co-habiting adults is happily not subject to the full might of employment law, or it wasn't when I last checked. And have you considered that this might not be an entirely serious thread? OP seems more than a little tongue in cheek!
  • Blatchford
    Blatchford Posts: 601 Forumite
    Brynsam wrote: »
    Lordy, but some people go OTT. An informal agreement to pay a spot of cash between co-habiting adults is happily not subject to the full might of employment law, or it wasn't when I last checked. And have you considered that this might not be an entirely serious thread? OP seems more than a little tongue in cheek!
    As with another thread, yes, I had considered it's a wind up. But unfortunately a whole load of people read these boards and think that everything they read is "good advice". I have no idea what the relationship is between these "relatives" but employment law, ad many people find out to their deep regret, is unforgiving. When the OP, assuming this is for real, finds that their "relative" is claiming employment rights, which wouldn't be the first time something like that had happened, they'll no doubt get off by saying that someone on MSE told them it'd be ok. I don't think. But no worries, that's never going to happen, because "relatives" never, ever fall out in a bad way, and never ever seek revenge. Do they?
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