Holiday Nanny / Ofsted / Tax Credits

[weakestlink]

We are currently thinking about childcare for the summer holiday as we have 1 DC at school (reception) and one at term time only preschool.
We could get a place for them at a childminder for £8.50 per hour (for 2) plus whatever retainer she would charge but my older DC is not keen on this option.

I have also found a babysitter / temp nanny who works 2 days per week in a residential home type place and is Ofsted registered.

I am wondering if/how I would claim childcare tax credits to use her (£7/hr). Would I take her on as an employee for such a temp period? It would be 1 or 2 days a week maximum for 4 weeks as the school run a holiday activity program themselves for 2 weeks.

Sorry this is so long!

Anyone?

Should take on as employee but it is a short period of time. Are they doing lots of temping for various families and thus would be self employed for very short things like this?

I don't think you will get a definitive answer. Suggest they call HMRC status team and see if HMRC will agree that some of their work, such as this, can be done under self employment.

Yes she is temping for various families - not just in the holidays but throughout the year. Some of them are perhaps on a more regular basis but I can't comment on that really.
Certainly for me it would seem as though she is working on a self-employed basis....

Is she going to invoice you, draw up the agreement, that sort of thing?
Status team would look at the big picture I guess, which may be pointing to self employment for non regular work.

Yes she will invoice me - but not entirely sure about a paper agreement / contract type thing. Perhaps a short form similar to one you would fill in when leaving kids in hotel crèche / center parcs kids club that sort of thing.
There is no commitment on either side - she is not obliged to work for us and we are not obliged to use her.

There is no commitment on either side - she is not obliged to work for us and we are not obliged to use her.

that sounds a good indicator that it is a service being offered to you, than you providing them with a job.

Have something from her in respect for her terms of business, such as her providing you with a written agreement. Keep her business card, email correspondence, that sort of thing, so that in future should it ever be queried you have some evidence that to your knowledge it was a service being offered, not you employing them.

£7 an hour sounds low to me, for someone self employed. You may want to check what is and is not included in that fee.

Thank you for excellent advice. Yes it does seen reasonable but we are down in North Cornwall where jobs are scarce and mainly NMW so I am not totally surprised.