Childminder charging half fees and claiming furlough

[MummyBear0401]

Hi guys,

When lockdown first started, our childminder said we had to pay 50% fees, which we accepted as we thought this is fair. However, not long after they said people could furlough and claim 80%. We are still paying 50% to her and she could be claiming furlough as well which would mean she is making more money than before. I couldn't find anything about this when doing some research.

Does this seem fair/legal?

What are your opinions on this?

How can she be furloughed? She doesn’t have an employer. I think you have wildly misunderstood.

She can't claim furlough as she'll be self employed. She might be entitled to the self employed scheme. But even this scheme means she'd be entitled to 80% of her profit, not income and only for 3 months. She could end up being out of work for a lot longer.

If you are furloughed or still employed you'll still be getting paid. So by not paying her anything you would be making a profit. How is that any different?

She might be able to claim under the self employed rules. But do you want to use a childminder soon? Is she reopening for you?

How can she be furloughed? She doesn’t have an employer. I think you have wildly misunderstood.

Self-employed people can claim if they meet certain criteria - I know several who have.

To answer the OP's question, I believe that if you receive money for your "normal" business, then you must declare it and do not qualify; but you can keep working provided you have no income (because that would put you in a better position to start back up).

There's a brief explanation here: www.moneysavingexpert.com/news/2020/04/self-employed-help-coronavirus/

It looks like HMRC will check.

As she is self employed she can not claim furlough, not everyone who is self employed is Eligible for the self employed money either and it based upon the last 3 years profits so she did not earn much she gets hardly anything now and if she has not be open for 3 years then she gets nothing. Your 50% fee is a retainer so she keeps your space for you for when she is allowed to open as she have been encouraged to take on key worker families who all still want to the space once lockdown is lifted. if in England She can open in 1st of June then all contracts become valid again and it will be full fees she can charge you. If you are not happy to pay this 50% perhaps you need to consider giving notice.

The criteria for claiming the self employed grant is that your business has been adversely affected due to Coronavirus.
If she is being paid half of her usual income then clearly it has and she is fully entitle to claim it.

We don't know how long this is going to last and how long she will be affected.

As others have said the cm is self employed

This means she cant be furloughed not get 80% of gross pay

What she will Get (like me) is 80% of average nett profits over 3 yrs

Which if been on ml part of two tax years like me , isnt a lot

Self employed can still work and claim

I'm a childminder. I can't get furlough as I'm self employed. I can get the self employed help scheme. Which it seems is NOT going to be extended like the furlough scheme has been.

The self employed scheme pays an average figure of my last 3 tax returns profits, averaged out and then 3 months average paid. For me that period of 3 years included a period of ill health and maternity leave which is unfortunate. This means the figure I've got from the self employed grant, that is meant to be like 3 months of income, is more like 1 months worth of what I'd have actually had as income. :-( Oh and I had to wait for it, so overnight I went to zero income.

All of my families are paying zero fees. I stuck to my contracts as I felt that morally and legally it wouldn't be right to ask for fees.

I can't claim universal credit either due to my partner working.

I've barely slept since we went into lockdown worrying about finances.

My families, who I welcome into my home and go above and beyond for are all either on full pay or 80% furlough. I do ponder how they are sleeping.

Just wanted to share a childminder's experience. Like I say I'm charging my parents zero fees.

Ooh I don't know how I've added those bottles to my post! That is quite funny. I think I was going for sad faces and ended up with gin bottles. Strange but amusing.

I see faces not bottles

I hear you about the grant. Was on ml split between two of the tax heats so have one year of good and 2yrs of half years so bad low income

If they did the years before ml or the two years after I would have been laughing

And yes they made us wait 3mths for it 😢

your on the website i can see teeny appropriate faces, no tiny bottles anywhere. This is flowers for you self employed people where the maths has worked against you.
Blondes amongst all the sadness you brought me joy today as the little snippet on my watched threads said
“I see faces not bottles”

Either you or she have misunderstood the furlough scheme.

😂😂😂😂 glad I made you laugh