Granny as nanny

[Eating43]

Hi. Does anyone know the legal position of having my husband's mum look after our children 2 days a week (in our home) if we are paying her? Eg does she need to be registered (don't think so?), and are we technically still her employer and therefore liable to pay NI etc even if we don't formalise the arrangement? Thanks in advance for any pointers.

She will need to be registered as a cm, and look after other children afaik, otherwise you cannot claim tax credits/ vouchers for the cost of childcare.
She will need to register as self employed and sort out her own tax/ NI.

Also, do not take the decision lightly, the change from grandparent to childminder can be difficult for all involved.

I do not know all the legal stuff around this but, assuming you are in England, I feel:

It is care in your home, so there is no requirement for registration. She is also a Relative so even if it was at her home, there is no requirement for registration.

You are her employer and would need to operate PAYE as per having a nanny be they related or not. You would need to pay minimum of National Minimum Wage unless she lives with you.

You should give a written statement/contract within the first 2 months of employment.

She is entitled to statutory benefits such as Holiday Entitlement, Statutory Sick Pay.

Why would you not want to formalise the arrangement? If you do not want a formal arrangement, then don't pay anything, then granny can decide on a day by day basis if she will care for her grandchildren.

Does she want paying?

She will need to be registered as a cm, and look after other children afaik, otherwise you cannot claim tax credits/ vouchers for the cost of childcare.
She will need to register as self employed and sort out her own tax/ NI.

No, as it is care in the child's own home. Also it is care by a relative.

So it is exempt from registration, in England. Ofsted Factsheet: Registration Not Required

However to claim Tax Credits / Childcare Vouchers they do need to be registered, so they would need to meet the conditions of the Voluntary Part of the Childcare Register.

Eating43, would you be using Tax Credits / Childcare Vouchers?

Thanks everyone

I did this when my DCs were younger and you cannot claim vouchers or working tax credit if using granny as nanny even if she is a registered CM.

This was the position fairly recently. I haven't heard anything about it changing. Others may know more.

I am a registered childminder and care for my grandson.
(Registered 19 yrs)
My dd claims childcare element with no problem.

Mendi that situation occurs if the gp cares solely for family child, not if also caring for non related dc/s

Ah that explains it then. In my case my DM would only have looked after my DC.

I think it is a stupid rule. The government should be encouraging people to find affordable solutions, not putting obstacles in their way.