UC childcare element and employing a nanny

Eugh

Hi,

I’ve just moved over to UC from tax credits and have never had any problems claiming for my nanny (I have 3 children - including toddler twins so it’s MUCH cheaper to have a nanny). She is registered etc and has everything needed to meet the requirements of ‘childcare’ for tax credits and UC.

But here’s where things get complicated: 

UC are now claiming I can only claim childcare on my nanny’s net pay not her gross pay because that’s all they see me putting into her account - even though I can prove the rest of the money goes to HMRC for tax and NI and to her pension. So I pay her £10ph but they’re basically o my allowing me to claim for around £7ph. 

I actually pay more than her gross salary because I have the employer contributions too! I feel like they’re being deliberately difficult. They just kept saying ‘but all you’re paying is such and such’ (her net pay). I even asked if they got the full amount of their salary in their pay packet, and they said no - but apparently that’s different. At one point they tried to accuse me of illegality! I did all this with tax credits with no problem 🙄 I’ve been reading up in how I challenge their ridiculous decision because I’ll be hugely out of pocket and could end up not able to pay for my child care so could end up with me losing my job! 

UC also suggested that I use my nanny as Self employed, but that’s very dodgy grounds legally as pointed out on the HMRC website.

Im so frustrated!

tomtom256

You would only get 85% of the costs back anyway, so unless you are getting less then 85% back, its not really a big issue.

calcotti

tomtom256 said:

You would only get 85% of the costs back anyway, so unless you are getting less then 85% back, its not really a big issue.

Presumably OP is getting 85% of what DWP have accepted as the costs so if DWP accepted the employer NI and employee deductions as part of the cost she would get more help - unless OP has reached the monthly cap already.

Eugh

They’re trying to give me 85% back of the net (£1050) rather than of the gross (£1300) which does make a difference.

I have 3 children and haven’t reached the cap amount for childcare. I’m a nurse who works 30 hours a week 

Icequeen1

I think if you can't persuade them otherwise you need to ask for a mandatory reconsideration and then (if needed) pursue an appeal to the Tribunal. Their advice on making them self-employed is terrible! 

tomtom256

Eugh said:

They’re trying to give me 85% back of the net (£1050) rather than of the gross (£1300) which does make a difference.

I have 3 children and haven’t reached the cap amount for childcare. I’m a nurse who works 30 hours a week 

Sorry yes, it does make quite a difference looking at the figures in full.

Reading it, they are employed by you? Have you got a contract stating hourly rates etc, as that may help?

Normally childcare providers invoice the customer which is then provided to UC, so I dare say this scenario isn't covered or is poorly written into guidance, however I don't recall seeing anything about nannies within DWP guidance.

Just found this on an FOI request: https://www.whatdotheyknow.com/request/universal_credit_and_use_of_ofst#outgoing-860432

Where a parent chooses a nanny to provide childcare they are required to provide comparable 
information to that which is required for any other childcare provider, e.g. that the childcare 
provider is suitably qualified, registered (if this is required by law), a contract of childcare 
provision, detailing the days/ times and total hours that the childcare provider is to care for the 
child(ren) over a given period (e.g. each month / term). Proof payment e.g. receipt, invoice 
marked as paid, bank statement etc, of the reported childcare costs paid to the childcare 
provider for the contracted period (receipts / bank transfer evidence may not always be 
required, however, parents should provide this if they receive a request for evidence. Evidence 
can be uploaded via their Universal Credit online account). 

So as usual it's clear as mud.

Kim_kim

Can you pay her through a payroll company.  

Eugh

Thanks everyone - I think I’m just going to have to wait and see what the decision maker says, and if needs be go the route of mandatory reconsideration etc.

She’s registered with everyone that is required and reaches all standards needed. It’s just frustrating that they can’t understand that £10ph is just that 🙄

I’d like to think that the decision makers etc are sensible, but I guess we’ll wait and see...