Help - Tax man??

[grabaspoon]

Hi

I have just been sent a letter from compliance operations at HMRC.

Asking me for records about the child I look after.

How I am paid, My fees, invoices, evidence of payment etc.

I have to send the above information to some person at HMRC.

I am a nanny I am paid a salary.

Any ideas what this is about?

Send payslip copies, bankstatements, both, for the period in question. Also a copy of work contract. Did you nanny for the whole of the tax year in q?

Yeah I have been with my boss for 4 years.

And my boss has a letter too - am live in so they both arrived together.

Wonder why they are looking into it. Is your boss claiming any tax credits or using childcare vouchers - perhaps that is why they are checking.

As AnneU says, just send them what you have... copies of payslips, copy of P60, copy of employment agreement/contract.

Think she gets tax credits - not sure... I don't get paid childcare vouchers.

Have typed up a letter and will photocopy and send of documents with it on Monday.

Apparently she has to send off documentation too - but has a different date to reply than I do.

Tax Credits seems most likely, they would be contacting you both so that they can check you are both saying the same thing. The letter sent to providers probably assumes that the provider is running a business, like a nursery or childminder, thus why it is asking for things like invoices.

May be worth you both looking at WTC5 which goes through how tax credits works with regard to childcare. It says that the costs of employing someone can be included in the claim made by the parent, so in my view that means Employer National Insurance and paying a payroll agency could be included, plus the nannies gross salary.