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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

To be concerned the 30 hours of childcare won't be open to us?

38 replies

Luckystar82 · 01/06/2015 15:38

My husband is self-employed in a moderately low paid role (just under national average salary) but one he loves and works hard at. He works full time hours and submits a tax return every year. I am an employee on just above the average national salary on PAYE. We are having our first baby this summer.

AIBU to be concerned that we will no longer be entitled to free childcare when our child turns 3 because we do not as a couple fit into the 'employee' category? The announcements today emphasise that both parents must be 'working' to qualify. I think this will exclude us even though my DH does work full time and so do I.

I will be quite annoyed if this is the case because it will mean missing out on the 15 hours that we are currently entitled to as it is universal.

What about SAHM? I know they don't need childcare, but many children have benefited from the social and educational aspects of the 15 hours and there is evidence that teachers have found children to be better prepared for school due to the improved access to early years education.

Already it feels like we are not entitled to very much...tax credits, paternity pay, shared parental leave....all because my husband is self-employed. I just feel that his employment status is not as respected and it pisses me off. He works hard, pays tax on time, doesn't take the micky with his expenses, declares every single penny of his earnings, and pays full NI. He would not be able to get a PAYE job in his field because they simply don't exist.

Life is already going to be harder for us compared to our friends who earn much more and live in the same expensive city, but they are PAYE so can apparently earn up to £150k and still be eligible for free childcare. I was counting on the free 15 hours to see us through to school years and have saved for childcare so I can go back full time (no choice) for up to age 3.

OP posts:
JamNan · 02/06/2015 07:08

self-employed people can claim working tax credit.

PeppermintCrayon · 02/06/2015 07:46

We pay a different type of NI. Can't opt to pay the employed kind as well. Can claim WTC but miss out on a lot of other stuff. For example if you end up out of work you can't claim contributory JSA.

SolomanDaisy · 02/06/2015 07:54

Given the government's commitment to helping the self-employed and small business start ups it would be astounding if the self-employed were totally excluded. I am self-employed and don't live in the UK, we get childcare subsidised as long as we don't use more than my estimated weekly hours of work. I would imagine it will work something like that, otherwise everyone will just declare themselves self employed to get free childcare.

WaferInMyCoffee · 02/06/2015 08:03

My guess is it will include everyone who pays tax. Seeing as that is the point of the scheme, get everyone back to work so they pay more tax...

BabyMurloc · 02/06/2015 08:09

Our family has received working tax with one of us self employed. The 15 hours will remain for all. Something else to look into is if he is currently a sole trader it is super cheap to set up a limited company. Do that (it alters some tax stuff slightly but it is all easily doable without accountants etc) and it really helps as it makes you technically employed by the company (even though you own the company) It also protects you better against anything happening financial as it takes away your liability (as long as you traded legally and properly which obvs you would) Don't panic and get some advice. Your bank should be a good start if you want to go limited. Theres also a lot of info online local chamber of commerce are great and occasionally job centre can help (depends on area) Cab can also do a check to make sure you are claiming all you are entitled to.

flora717 · 02/06/2015 09:33

Cons want to bring in formal education from age 3, this is just a thin end of the wedge to get those "honest hard working" families on board. I am sure the scheme will be wider in 3 years.

PeppermintCrayon · 02/06/2015 09:38

Something else to look into is if he is currently a sole trader it is super cheap to set up a limited company. Do that (it alters some tax stuff slightly but it is all easily doable without accountants etc)

It's really not that simple, FYI.

Quodlibet · 02/06/2015 09:46

Me and DP are both SE and we claim tax credits - you are eligible for this. I agree OP there are lots of other disadvantages to being SE though.

The 15 'free' hours IMO is bollocks anyway. If you live in London it's almost impossible to access any free hours, you just get a reduction on a nursery bill that's hiked up to cover their loss on the 'free' hours.

maudpringles · 02/06/2015 09:51

Absolute rubbish advice about setting up as a limited company op.
Honestly, if it was that simple everyone would do it Hmm

KittiesInsane · 02/06/2015 10:10

£390 a week is rather a lot more than minimum wage for a 40-hour-ish week, NoArmani?

NoArmaniNoPunani · 02/06/2015 14:17

The OP says her partner makes just below the national average wage, not minimum wage though

KittiesInsane · 02/06/2015 14:20

Yes, sorry, skip-reading!

YesThisIsMe · 02/06/2015 16:01

IME loads of sole traders and contractors do indeed go the limited company route. It's fiddly but basically straightforward assuming you'll be using an accountant for your tax affairs anyway.

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