Anyone else get this problem? I have paid my nanny's (fairly minimal) tax credits to her on behalf of the IR, resulting in them owing me £1500. They seem incapable of issuing a cheque. If it were the other way round they demand the money quarterly (ie if I owed them money). I think I will charge them £100 + interest on the money. Can I do this?
Tinker, Tax credits are paid by your employer if you are entitled to them, so as an employer I have to pay them with her salary and then they are allegedly refunded to me at the end of the tax year. As she has children of her own and is a single mum she qualifies for tax credits despite her VAST salary!!!
What? Really? If my nanny is eligable for tax credits, I'm supposed to pay them and wait until the end of the tax year for reimbursement? And I thought I'd heard it all!! ,picks self up off floor.... Right, just who qualifies for tax credits? Do they have to be a uk citizen? Permanent resident?
EU/EEA area nationals, UK nationals and perm residents of the UK can claim tax credits. People here on work permits, student visas, working holidays, and ANY visa that is limited in its leave to remind - e.g., has a defined end date - cannot claim tax credits, as they are considered public funds.
Phew.... I'm off the hook. But, CD, for future reference can you point me somewhere which states that it's the employer's responsibility to pay these tax credits? I really should be informed on this as an employer.
hanks expat, but I still couldn't find anything that states the employer is obligated to pay the tax credits. Entirely possible I missed it. But if anyone knows where this info can be found, I'd appreciate being enlighted.
How its paid
Your employer will normally pay any Working Tax Credit (apart from the childcare element) with your pay though payment through employer is being phased out by April 2006 when you'll get Direct Payments.
If youre self-employed, HM Customs & Revenue (HMRC) will pay it directly to your bank, building society, Post Office® or National Savings account.
If you're part of a couple and you both work at least 16 hours a week, you can decide who'll get the Working Tax Credit payments.
HMRC pays the childcare element of Working Tax Credit directly to the main carer for all the children in the family, along with Child Tax Credit. Even if you're employed, you will get this element directly and not from your employer with your pay.
I was just thinking about this. Don't you use nannypaye for your taxes/payroll. It might be worth seeing if they can assist. I certainly would have a thing or two to say to the IR if they did this to me. (as you would expect me to)