money owed due to tax credit mess up!!

[mazzed42]

ive been childminding 2 toddlers for the same person for 5 months now. no problems until they had to renew their tax credits, a joint claim had to be put in and theyve had trouble ever since trying to get the claim sorted. its been 5weeks and ive not been paid as they cant afford to pay only with the childcare element from tax credits. im not sure if i will ever get all my money and its taking so long to sort out!!! ANY IDEAS!!!

Any ideas??? YES! refuse care until you've been paid. You have only their word that it's taking so long. Using this excuse is too easy, and we are supposed to care for thier children for free?! I don't think so. Be tough and tell parents that until you are paid, you cannot offer care.

I have had several mums that have moved in with new partners and no longer had any help from the childcare element. I hate to say it but this has probably happened with your minded family, and they cannot afford, or don't want to pay it all out themselves after having so much help with it. Tax credits do not take this long, they are trying it on. I rang tax credits on Fridy to say dp had chnged jobs, gave them all the info, they had sent me a renewal of claim letter by the tuesday.

I would suspend their childcare too until the bill is paid in full. I have this in my contracts though so you may want to call ncma up for some advice before you speak to teh parents.

When the parents sign a contract with you, you need to make clear that it is THEIR responsibility to pay you ON OR BEFORE the agreed date, regardless of whether they intend to pay you from tax credits, salary or any other source of income. They need to understand that you have bills to pay as well - when parents pay late we can't just put off our bill payments indefinately. Our bills still have to be paid on time, that includes buying food for our families and the children in our care, petrol in car etc. Late payments could put you out of business!

The system for tax credits ensures that the childminder has nothing to do with the parent's claim, except to confirm when asked how much has been paid. You have no way to know if the parent is entitled to anything at all, and if they are it will only be up to a maximum of 80% and may be a much lower amount. So, they still need an alternative source of income to ensure your bills are paid in full.

I like to put everything in writing, so I would wtite the parents a letter with an invoice showing what they need to pay and give them a deadline to pay it by to keep their places with you. You may wish to give them an option of a payment plan but if you come to an arranngement you should both sign a written agreement of the payment terms, including that if they miss any agreed payments you will terminate the contract(s).

Do you charge a late payment fee?

yes i charge a late payment fee of £5.00 for every week its late. I have sent them an invoice for what they owe and told them that it needs to be sorted out in a week as i have to pay bills and cant continue to hold places any longer. but as i have no other mindees at the mo i am a bit stuck.

i have not been minding the children while all this has been going on and i have just been charging them half fee to keep the childrens places, however as i have not received any money it is still not income.
i offered to ring the tax credits for them and try to find out what the hold up is as they are both portuguese and cant always understand what they are being told over the phone. so i know that there situation is genuine and that they will get the tax credits again its just a question of when and if it will all be back dated!