My friend wants me to look after her children, how can I legally?

[COCKadoodledooo]

I'm not a registered childminder. It's something I'm looking into doing atm but I very much doubt that if I do it I'll be registered before she needs me.

I may be a very nice friend, but this isn't really something I'd want to do for free.

Whether I look after them at her house or ours doesn't really matter. I have 2 dc's of my own (18mo and 7yo), but she's mainly looking for holiday childcare, and dh is a teacher so with careful planning can guarantee to be around to look after our 2. Hers are 6 and 4.

Obviously I'm not looking to flout the law, but I'm keen to help out a friend in need (childcare round here is diabolical - there simply isn't any). Is there any way I can?

I think that if you provided the care at her house, then you would be a nanny, and therefore, wouldn't need to be registered. However, she would need to be responsible for paying your tax and national insurance etc, and you would need to have a contract to protect you both.

Thanks Littlefish. I had thought similar but was having a google around before I came here to ask and I found lots of pages saying nannies now need to be registered too?

Oh, perhaps I'm wrong then. NannyNick is usually very good on things like this.

Nannies only need to be registered if you want to use childcare vouchers or the childcare element of tax credits to pay the nanny.

You can be a nanny without needing to be registered. You would not be able to accept payment via Childcare Vouchers or Tax Credits.

As a nanny you would be an employee... so your friend would need to register as an employer and operate paye (depending on your income). You would have employment rights.

Do you need to do it for money?

There is an exemption within legislation which if it is a friend, they could 'pay' in providing goods or services. See: The Childcare (Exemptions from Registration) (Amendment) Order 2010

However exactly what is meant by that I am not sure. Not sure there have been any cases which test the legislation to see what is and is not provision of goods or services.

Thank you - can see where my confusion has arisen.

I didn't realise that re goods and services NannyNick, but tbh we do need the money rather than anything else.

It just seems hugely onerous for them to have to register as employers for what could end up being just this summer holiday (and not even all of that!). I don't know what's actually involved in doing that but I'm loathe to make them jump through hoops so I can help them out. Needs must though I guess. As for PAYE I very much doubt I'll be earning enough to pay tax. Not that I'd know how much to charge - feel funny about demanding money from friends.

I posted another thread earlier today in the money section as well because I've been asked to look after a neighbour's children a couple of hours a day (they're both over 8, am I right in thinking I wouldn't need to be registered for that?), that I would be doing on a self employed basis, right?

Ho much ould be reasonable to charge for both/either?

By caring for the children at your home, you are calling the shots so are providing a service thus can be self employed. Care for those aged 8 or over is unregulated in England, so childminder registration not required.

Employment status of nannies has been discussed on here in the past in quite some detail. It can get complicated, as bigger picture may be taken into account by an HMRC status officer.

For nannying, minimum would be National Minimum Wage which is based on your age. However it's really up to the parents employing you to determine how much they feel it's worth paying (given the associated costs of having a nanny - see What's the total cost of having a nanny)
Also consider carefully if you want to work for friends... either as a nanny or in future as a childminder. I can work well, it can result in lost friendships.

For childminding, research childcare in your area then consider if you would be charging something similar or something different. Consider your overheads, expected turnover, profit margin desired.

Assuming you have no other job they can pay you up to £102.99 a week without having to register as employers, and up to £136 a week without any tax or NI actually being due.

But if you are going to register with HMRC as a self employed child carer, looking after over 8's some of the time, and this arrangement with your friends is just for part of the summer holiday it could probably be counted as part of your self-employed business no matter where you look after the children.

Be very careful about looking after a friends child, i did it for a friend a few years ago, as a favour so no money changed hands.
It actually ruined our friendship when i told her i was no longer able to do it.

Thanks for the thorough info NannyNick

mranchovy can you point me to where I can find that in writing? It's not that I disbelieve you, but I'm sure my friend would like to see it for herself.

Mollymax that's really sad. We're both aware it's a short term thing, and she knows that I'll continue to be on the lookout for employment in my field (though obviously if I do agree to look after her children I'll make that my priority).

HMRC: Tax Rates and Thresholds - see class 1 NICs

For more about PAYE see PAYE Intro

NannyNick you are a marvel, thanks. I shall pass this info on to my friend tomorrow.

More particularly, this information from HMRC says when you (don't) have to register.

Surely, given that you're friends, you can just do cash in hand?