Grandparents paid for childcare

[Lea149]

Good morning. I am returning to work from maternity leave in the summer and my mum will be providing childcare for me. As she is giving up her job to do so I will be paying her. I was just wondering if anyone else has done the same? Does she have to register as self employed or register the income tax wise etc? Is there anything else she would need to do?

I read on the gov website that if she is Ofsted registered and look after your kid outside of your home, you can claim tax free childcare.

"You can only get Tax-Free Childcare to help pay for childcare provided by a relative (for example, a grandparent) if they’re a registered childminder and care for your child outside your home."

www.gov.uk/help-with-childcare-costs

I don’t think you are allowed to pay someone to mind your children unless they are registered.

@DingDangMintyBells

That's not correct. Nannies do not have to be registered as long as they work out of your home.

OP you'll need to set up tax, payroll etc via a nanny agency or direct with HMRC. You'll need employees liability insurance. And your mum will be enrolled paid holidays and pension.

Or pay cash and hope no one finds out. They probably won't.

This is so bad for your mum, what about her pension, her National Insurance contributions, her state pensions contributions, her sick pay, holiday pay and all the other benefits she will get from working and being employed.

Also think pp are right and she has to be Ofsted registered in order to be paid.

please check this out really carefully as what happens now will affect her whole future

You are going to have a bunch of people insisting on ofsted registration etc etc. Honestly, it's an arrangement between you and your mum so I think casual is fine.

BUT... having said that, as a PP has said, if you're paying her you do need to be clear that no one is being short changed. Her in the form of pension, paid leave etc. You in terms of flexibility and what you can expect. A real childminder or nanny would be obliged to provide you with certain information and/or to behave in a certain way and treat your child a certain way etc. a Grandmother may well feel she can take a different approach.

So make sure these things are all clearly agreed between you before you go ahead. Because the risk is far more than one or both of you feel resentful and upset than that there's an HMRC issue.

www.ncchomelearning.co.uk/blog/paying-grandparents-for-childcare-uk/amp/

@isthewashingdryyet

Nannies DO NOT have to be Ofsted registered. Most aren't as it's expensive and a faff

Our nanny isn't Ofsted registered. She has 30+ years experience and childcare qualifications so historic they are no longer counted.

We don't get the tax break but she is worth every penny more, and yes that includes pension and NI. We use NannyPay and find it straightforward.

I did that with my DM. We paid her a salary, her tax and NI, and we gave her 25 days holiday and a contract. It worked really well until Dc were younger teens and then we really only needed school run help - so it ended up being difficult to work out what was fair as a FT wage was too
Much for what she did but she needed the FT wage. Also be warned that your Dc will in effect lose a grandparent as they won't want to spend holidays etc with their "nanny", and push her away as teens as they would their parents. One of my DC adores her now, the other seriously dislikes her. But my hid they got great childcare, masses of "capital capital" (she's vv cultured) and our working lives were massively helped.

If @Helpwithdaughterpls is right this would be ok if she comes to your house, but if you drop off at her house(which would be the more usual arrangement) then she would need to be registered.
Surely there are some rules about who can work with children, like DBS check, first aid training etc.

Depends what your mum wants- everyone on mn is so by the book they wouldn’t dream of paying cash in hand and minding their business.

www.chroniclelive.co.uk/news/cost-of-living/martin-lewis-benefit-grandparents-childcare-25226357

Check this out

@OnlyFoolsnMothers you wonder why we are not advising her mum to sign on and take cash in hand?

Great the nan can pay tax and the mum loose her cb state credits- sounds spiffing!

You don’t lose the child benefit credits, you don’t benefit from them if you work so are able to gift them to the person caring for your child.

What if OP goes part time or has another baby. Trust me the government isn’t doing this out the kindness of their hearts.

Surely there are some rules about who can work with children, like DBS check, first aid training etc.

Not if you employ them in your home. The government actually trusts you to make your own decisions! No rules about who you can employ.

Obviously, it is advisable to employ someone with a DBS check and first aid training, but no rules requiring it.

Wouldn't enter my head to pay my mum through the books in a situation like this! I'm probably wrong, but I would have just paid her the cash- and been extra generous with it if I could afford to!