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How much should I pay my childminder for petrol?(21 Posts)
7wks in and everything is going okay with new childminder. On the whole the initial contract terms are being met and she is proving to be a flexible and positive minded person. She mentioned this evening that she will be now be wanting petrol paid which I should state I have no problem with but I don't know how much I should be offering.
Is it the standard 40p per mile? As it is I have no idea if she has a set figure in mind already and I really don't want this to turn matters sour between us (or have to cut down her hours to compensate, which I will and can do, if I have to) so I need to have an offer in mind for when we have a chat about this, which will likely be tomorrow.
Part of the contract is that she picks DD up from home in the morning and she also drives DD to extra-curricular activities - a couple happen to be 3miles away - from what I gather it is these activities that she wants to start charging for.
*cross-posted because I did not know where best to put this!
hi i dont no what she would expect you to pay maybe she ll come up with a daily rate maybe just add a bit onto to your daily fees. usually a childminder wouldnt charge but as she is doing extra running about for you which a childminder would not normally do ie pick kid up frm yours and take extra places 3 miles away she must have noticed that she is using up more fuel than she normally does and is obviously looking for the money to cover it.
I don't think cm can charge petrol or travel expenses as such because I thought they then got into rules about taxi services or some such nonsense. I thought they included these in their general hourly rate.
So she is changing things a few weeks in? Is this in the contract?
Isn't fuel a business expense that the childminder can claim against income tax?
BIM52751 says that a childminder can choose to claim the authorised mileage rate and put that amount as on their expenses.
I thought the same as Nick, that CMs can claim this back against tax!
Is it in your contract that she epects you to pay petrol?
>Part of the contract is that she picks DD up from home in the morning and she also drives DD to extra-curricular activities - a couple happen to be 3miles away - from what I gather it is these activities that she wants to start charging for.
When your DD is in their car, that time is I presume being paid for on the hourly rate.
The time it takes your childminder to go from their home, to your home to pick up your DD may not be being paid - is that the case, or are you charged timewise from when your childminder leaves their home?
Normally a cm wouldn't charge you for petrol providing she is being paid for the time she is driving to pick up your dd (eg the time she leaves her house) and while your dd is at the other activities.
However I would say that normally cms can't accomodate drop offs 3 miles away so you 'could' consider yourself lucky to have found someone able to do this for you... I have turned down many a contract with parents wanting me to take to ballet or cubs and I just can't fit it in.
Before you refuse to pay or reduce hours etc It would be wise to consider how much you like her, how easy it would be to replace her.... before you risk upsetting her.
If I were happy in every other way then I would probably just pay her the 40p a mile and get it over with rather than risk bad feeling and upset... she is going out of her way to drop your dd off to activities (although Im guessing she knew this when she signed her contract) but she obviously feels its leaving her out of pocket.
If you aren't that bothered about her then you certainly have a case to argue...
We're not meant to charge petrol as it becomes a taxi service and then the insurance can be invalid, but yes 40p a mile is the norm as that is the amount we can claim as a business expence but I would agree a slightly higher hourly rate to cover it.Saves any messy calculations and disagreements.She can still claim the mileage as an expence.
Just seen that she is adding this on after 7 weeks, she has obviously just realised that she is out of pocket, so its up to you really whether to take pity on her and pay her extra or not or wait for the contract review.Has she got a husband who has noticed the fuel bill has rocketed? and isn't very happy.
yes I charge for petrol the standard 40p a mile, thats for any pick ups and drop offs. Any other activity I choose to take the children to, i expense to the inland revenue as business miles.
In youe case you are choosing the activities so I would charge you.
Why should this turn sour? suprised this wasnt discussed at the initial contract signing.
I thought we WEREN'T ALLOWED to charge parents as we're classed as a TAXI?
will check, thanks for that but have always done so with approval of accountant..
I don't think it's to do with the accounts side though so your accountant may not have known? I thought it was your car insurance that became invalid?
You are not allowed to charge for petrol if you are a childminder.
As in effect you are charging for transporting children in your car and therefor will be classed as a taxi - which means you need to be licensed as a taxi, insurance etc
There is info on this on the NCMA website someplace!
Childminders can claim it as a buiness expence as nick said
Thank you all! Sorry for the delay in coming back to post but I will say that I read most, if not all, before chatting to CM yesterday evening.
I also phoned NCMA site before the chat and the lady I spoke to did not say anything about her NOT being permitted to charge for petrol. In fact, she was forthcoming about the amount I should be offering per mile and that this should be included in a revised contract.
I offered up the 40p per mile to the CM and seemed happy with this.
@nick, all the after school drop-off's were discussed prior to signing the contract because it was a vital aspect of initial advert. Also CM is paid from pick-up to a set time daily regardless of early pick up (there are currently 4hrs per week she gets paid for that DD is not there).
I will alert her to the hmrc link in case she is not aware of claiming petrol as expense.
You seem to have ignored the fact that her insurance may be invalid if charging for mileage, ncma are not insurance experts, for peace of mind get your cm to check with her insurance as they are all different.It is a different business class for taxi's and childminders. My insurance is very clear I can not charge a cost per mile using class 1 insurance but I can charge a higher hourly rate and claim the 40p as an expence.
From an insurance point of view, carriage of passengers for hire/reward is classed as a taxi and needs special insurance - class 1 wont cover this.
When I was childminding I provided a very similar service and I did charge an additional £2.00 per day for the service. As others have mentioned you can not actually charge petrol as otherwise you would be classed as a taxi, my charge was for the additional services that were on offer. It always worked very well for me and my parents.
I hope it works out well for you both
I will echo everyone else - CMs need to charge an hourly rate, NOT for petrol. Charging for petrol makes you a taxi, therefore your insurance will be invalid. This is something I checked out very very thoroughly.
I do know of CMs who charge for petrol, and choose to ignore whether or not this is OK. I would hate to think that the way they find out that this is not OK is if they make a claim.
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