Childminders charging half fees when they are away on holiday.

meester

Dippychick wrote: »

Childminders only have to declare on third of their income too I believe.

Totally untrue. They declare their profits, same as anyone else. It is true that HMRC permit childminder to use a simplified scheme so that you can deduct 10% of billings to cover the wear-and-tear kids cause on your house, but this is still supposed to only cover profits. The dispensation is designed to be fair to both HMRC and the childminder. Profits are probably about 70% of billings.

Do you think that a solicitor charging £125 an hour makes £125 an hour profit? Of course not.

You can't have it both ways. You are either self-employed or you aren't!

Clearly they are self-employed, and that's why they dictate the terms.

Market forces. If you don't like it, find another one.

My son's school expects me to pay whether he is there or not, 52 weeks a year, even if they are closed. In the school holidays, I would have to pay twice, effectively, if I needed someone to look after him from 9 to 3:30pm.

My wife did it, and she made a very small amount of money and got lots of hassle, it wasn't worth it at all.

thatgirlsam

Spendless wrote: »

Someone who had been a childminder said the same thing about tax credits to me recently, and I thought same as you Dippychick, what about those who don't get help from tax credits.

My mum is a self-employed hairdresser, with regular customers. I'm wondering what reaction she'd get if she said "can't do your hair next week Mrs Smith cos I'm on my hols, but it'll still cost you £xx for the shampoo and set I won't be doing".

hardly the same thing... im sure your mum doesn't have to do only 3 peoples hair per day...
childminders are only allowed to look after a set number of children.. for obvious reasons.

galvanizersbaby

meester wrote: »

My wife did it, and she made a very small amount of money and got lots of hassle, it wasn't worth it at all.

Your wife and everyone else's on here it seems Meester!

Paparika

Check your contract that your child minder gave you when you first started with her.

Edinburghlass_2

Dippychick wrote: »

Indeed - so why would they care when they are paying their specifically allowed Child Tax Credit to a childminder? It would not be their money, if it wasn't going to the Childminder. If you see what I mean. They wouldn't have more in their back pocket.

No I don't see what you mean, you don't get any element of child care with CTC?

What about people who don't get much paid out of their childcare? So the bulk of their childcare fees is from their own hard earned cash.

You will however get an element of child care if you are on low income and claiming WTC.

http://www.adviceguide.org.uk/index/life/benefits/benefits_and_tax_credits_for_people_in_work.htm

For example, you were paying £200 out of your own money, then £100 from Tax Credits or similar.

And you were working for possibly, £50 a week after all the fees and everything else is taken into account.

In this case, what should you do? Forget it? Stay at home full time?

At a guess I'd say this is really what this thread is all about, you having another go at people who are able to claim the child care element on top of WTC :rolleyes:

Not so long ago you posted about how it was an nice money earner I trust you have now discovered that its not so easy and that you have to be registered, all people who live in the home have to be checked along with the home being inspected.

http://www.childrensinformationservice.org/Becomming_a_childminder.asp

Personally I would never have left my child with someone who thought it was a "nice money earner" as opposed to someone who cared about children and the business they were running.

Spendless

thatgirlsam wrote: »

hardly the same thing... im sure your mum doesn't have to do only 3 peoples hair per day...
childminders are only allowed to look after a set number of children.. for obvious reasons.

why isn't it? She's self-employed, she has overheads and expenses and tax to pay, maybe even other staff to pay (unlike a childminder).

She might have 6 customers a day, same as a childminder can have up to age 8.

The only difference that I can see is that it's been accepted as 'that's how it is" when it comes to the childcare industry, when we put the same scenario into another self-employed business eg hairdressing suddenly it's different.

Mips

Edinburghlass wrote: »

At a guess I'd say this is really what this thread is all about, you having another go at people who are able to claim the child care element on top of WTC :rolleyes:

Not so long ago you posted about how it was an nice money earner I trust you have now discovered that its not so easy and that you have to be registered, all people who live in the home have to be checked along with the home being inspected.

http://www.childrensinformationservice.org/Becomming_a_childminder.asp

Personally I would never have left my child with someone who thought it was a "nice money earner" as opposed to someone who cared about children and the business they were running.

I suggested it is - especially as some childminders - not all at all - cram 8 kids in one room.

For example - 8 x £30 a day = £240
a week = £1200

Over a year = approximately 60k

Then a childminder only has to declare 1 third of that income - they are only taxed on a third of that I believe.

VERY NICE EARNER - not for me though or my husband. And we never got past the stage of laughing about how it wouldn't suit us and how we don't have the room


Anyways. The point is.

I am not having a go at anyone claiming Tax Credits - I was just pointing out, that for those who get practically the full 70% paid and then don't mind paying all the half fees/full fees to the childminders, wont miss the money anyways as it is given to them.

Very fair comment and I am sure the Mums and Dads on this board who struggle without any help will see where I am coming from.

thatgirlsam

Spendless wrote: »

why isn't it? She's self-employed, she has overheads and expenses and tax to pay, maybe even other staff to pay (unlike a childminder).

She might have 6 customers a day, same as a childminder can have up to age 8.

The only difference that I can see is that it's been accepted as 'that's how it is" when it comes to the childcare industry, when we put the same scenario into another self-employed business eg hairdressing suddenly it's different.

because childminders are limited in what they can earn..
most childminders have their own children... so lets say they have 1 under 5.. so they are allowed 2 more to mind..
you are only allowed 3 under 5... older children will be at school in the day even if you do mind them after..

im sure your mum would not like to be limited to doing 6 customers a day by law.. it will be her choice how much work she does..

Mips

Spendless wrote: »

Someone who had been a childminder said the same thing about tax credits to me recently, and I thought same as you Dippychick, what about those who don't get help from tax credits.

My mum is a self-employed hairdresser, with regular customers. I'm wondering what reaction she'd get if she said "can't do your hair next week Mrs Smith cos I'm on my hols, but it'll still cost you £xx for the shampoo and set I won't be doing".;)

I think this a perfectly reasonable question - some people don't. I don't understand why the defensive

Mips

thatgirlsam wrote: »

because childminders are limited in what they can earn..
most childminders have their own children... so lets say they have 1 under 5.. so they are allowed 2 more to mind..
you are only allowed 3 under 5... older children will be at school in the day even if you do mind them after..

im sure your mum would not like to be limited to doing 6 customers a day by law.. it will be her choice how much work she does..

Last childminder I looked at had an Assistant and could get more kids in, the assistant was her husband who was not registered and was not there to meet us.

This put us off. The room was so tiny I could not imagine two adults in there with 2 kids, let alone 8.

If you pay out alot of money you want to make sure you aren't effectively paying for somethin similar to a Rabbit hutch.