A legal way to get around this?

[NearlySpring]

My friend has recently become a single parent. She works full time and hates the thought of acing to rely on benefits so wants to keep working. She's found a childminder for her 7 yr old son and is claiming the childcare bit of tax credits which covers most of her fees.

Her mother has now offered to give up her part time job and care for her grandson but my friend would have to pay her. Friends cannot afford this without tax credits but is aware you cannonly claim for registered childcare providers.

Is it easy enough for her to register as a childminder. They want to do everything By the book but it just seems silly to be paying someone else to care for him when his own grandmother could so easily. Is it true that she needs to also have at least one non related child on her books? Would this child have to be full time?

Also Im sure Ive heard somewhere that cm's only looking after children of a certain age 7/8? Then they don't need to be ofsted registered? Is that right? If so, can you still claim the childcare bit of tax credits to pay them.

Friend isn't on MN so said Id ask for her and Im sure we'll get some great advice. Thanks in advance for any ideas and advice at all.

Childcare vouchers etc cant be used to pay family.... even if they are registered childminders, as far as i understand.

I dont think there is a legal way around it. sorry.

I didn't mention childcare vouchers... I was talking about the childcare part of tax credits. So are you sure you're giving me the right information? Thanks.

Hmmm not sure about that
but have found here that inland rev does not allow vouchers to be used to pay family (unless a family member runs a nursery and child has same Ts&Cs as all other children at nursery.)

If inland rev dont allow it for childcare vouchers, i cant see why they would be happy for tax credits.... but havent looked into it either.

If they are registered CMs you can use vouchers. Family or not.

Im a childminder and as far as i was aware you have to be a registered provider to accept payment from vouchers and tax credits I think you have to give them the registered provider details too so same rules would apply. As far as registering as a childminder its not quite as straightforward as people think! and could take anything from 6 to 12 months maybe longer (i know people this has happened to) and the paperwork is hideous! there's the childcare course,first aid,policies,procedures,risk assesments,home safety,crb checks etc etc. Also,if granny was working as childminder for grandson,yes they need to be actively working as a childminder this then helps inland revenue deter people using grandparents as a tax loophole.

Grandmother would need to be registered as a CM and caring for other children, not in child's own home. That, as has been pointed put, can take a long time....

here

'Q. A family member looks after my child(ren), will I be entitled to the childcare element of Working Tax Credit?
A. You will not be eligible for help from the Working Tax Credit childcare element if the childcare is provided by:
a relative of a child caring for that child in the child?s home, even if the relative is ?registered? or ?approved? or
a relative approved? under the:
Childcare Approval Scheme in England
Approval of Childcare Provider in Wales
Registration of the Childcare Providers Scheme in Northern Ireland
caring for a child or children, away from the child?s or children?s home and the care is solely for a child, or children, to whom the provider is related.'

Thanks. Silly isn't it. The government will pay for people unknown to the child to care for then but won't pay for a relative to earn their living for caring for a related child.

Nope cos we should all be altruistic and thinking of our families and doing it for free. Natch.

can you pay a nanny with tax credits

therefore granny becomes nanny and looks after her gs in his house?

That wouldn't work as it would be relative in child's own home, blondes. However an unrelated nanny can be.

so basically granny keeps her job and op friend keeps her cm

It's the Relative thing again blondes - Childcare Act 2006 defines Relative.

Yep, think it's probably best that OP's friend keeps the childminder - or granny does it for free.

if your "Gran" became a nanny, "mum" would need to pay nanny and be in charge of their tax etc, because "mum" would be Nanny's employer.
so that might not be the best thing to do, you might end up paying heaps more for it.

Thanks all. I'll pass on all your comments.

In an ideal world grandma would love to have the little one for free but realistically we all have to earn a living and she can't look after him whilst working so this was an idea me and my friend had. Back to square one then I guess. Thanks again x

grandparents can register as a childminder take on another unrelated child and then the parent will be able to claim tax credits. my mum is a childminder and watches my daughter and i get tax credits

doubt if granny wants the extra hassle of registering as a cm and then having to find another mindee as well

Thanks for all the replies here.

I printed this out for my friend to read and had a chat with her too. Her mother made a few phone calls and has found out that registering as a childminder isn't as simple as she first thought.

ALL this hassle just so my friend can use her tax credits to ensure her son is looked after by a willing close family member. It's just so silly. As fantastic as childminders and nannys are Im sure some parents would like a close relative to carefor thier children instead.