Are childminders ever vat registered?

[stressed2007]

Odd question I know but I need to find out the usual position with this( I supect not) as I am being asked by accountant to produce VAT registered receipts from my childminder from 3 years ago! Thanks.

No

Childcare is exempt

I have this in writing from the VAT people 3 times from 3 different levels of 'expert'

Yes but I just got a handwritten receipt from a tear out ticket book - showing my name and payment amount - should I have got something else then? Thanks

No

You can't have a VAT receipt as VAT cannot be charged. Childminders are NOT allowed to register for VAT

Sorry I read your post incorrectly - you meant no it isn't not yes it is.

So is mny handwritten receipt from the tear out book normal - this guy wants letter head etc - I think he is off the scale.

Way off the scale

Childminders are very small potatoes (financially)

Why is your accountant wanting receipts for childcare anyway? Is your accountant saying that you can claimback childcare costs? E18 does say about Directly Contracted Childcare but the claim amount is only that £55 per week is exempt from tax and Class 1A NICs. Is/was your childminder directly contracted by the business to provide childcare to all eligible employees?
Page 10 of E18 is where you can find reference to Childcare being non-vatable.

Childminders would not reach the VAT threshold, due to:
a) Childcare not being vatable (See E18, page 10)
b) 'taxable supplies' needing to be at least £68,000 per year. I feel it is unlikely that anything a childminder does would be consider 'taxable supplies'.
HMRC: VAT - Introduction

Note: I am not an accountant and I don't fully understand UK taxation rules. Therefore if in any doubt contact HMRC to see if they can assist you.

The provision of childminding services by a registered childminder is exempt from VAT. Businesses who only supply exempt services cannot register for VAT.

I presume your Accountantis trying to deduct your childcare expenses for income tax (and not VAT) purposes?

it's a long story to do with a legal case where childcare costs are being claimed as damages and to do with the fact that I am being told that the receipts provided to me are not "official" enough - they should have been on ketter had(!) with vat number and other ridiculous requirements - on the basis I was employing this great CM 3 years ago it sems a but late to be querying all this and I did n't think what was being asked was at all sensible. Thanks

I would say that 90% of childminers do not use letterheaded paper

None would be VAT registered as that would be illegal

Presumably she signed the receipts?

Did you pay by cash or chq?

Are you still in contact with her? She might write you a letter

Yes she signed them. I never kept the originals at the time but when they were first requested 3 years ago I contacted her and she photocopied them for me (I also have copies of the schedule of hours she did). I paid cash as she often wanted paying every few days. And she has now emigrated so you can see I am a bit miffed to be told they are inadequate now.

Well some Childminders may be VAT registered if they engage in activities other than the supply of care! However if the value of the taxable supplies does not exceed the VAT threshold there is no obligation to register for VAT.

A childminder is typically a sole trader. The only things that need to be on the invoice/receipt for identification purposes are:

<ul><li>any business name being used if the surname of the sole trader is not being used</li><li>an address where any legal documents can be delivered to you if you are using a business name </li></ul>
~~~ End Quote ~~~
Source: BusinessLink - Invoices

Your childminder may not have been aware of that, so all you may have is a basic receipt and a contract (which would give the providers name, address). 

As you are dealing with a legal case, if the other parties accountant won't accept the documents you have, contact your legal team to get them to sort it out.

it is my legal team requesting it - 3 years down the line! He is just being dense and difficult.

They told me I couldn't be under any circumstances (I was approaching the threshold for turnover....I made no profit that year)

The rotters they lied

(sorry for the hijack)

KatyMac - you will have to start up a sideline! Are you soooo desperate for a VRN??

stressed - he is just being difficult. All you can do is present what you have... that will have to do. Your legal team will have to work for their money and fight the case with what you have, not what you can't get!

No but I wanted to claim back the VAT on what I spent without adding it on to my invoices

I was more worrie that I might have to charge it as I was approaching the limit (never got there in the end - then had 3 disastrous years)

I lurrrrrrve nannynick........are you married?

Thanks to all the posters from last night.

Further question please - as CMs do you give actual printed invoices for payment or just receipts for payments received?

Thank you

I provide invoices for my 'pay monthly' mindees, however I do have ad-hoc mindees and occasionally even the pay monthly mindees have the odd extra day, neither of which i provide invoices for, just receipts

hth

I do invoices too but that is because I've been involved in SE business all my life & know how much easier it is if you have a papertrail

I do invoices for all mine just like KatyMac been s/emp a long time and it's a good habbit to keep up - interesting re the vat thing, I was wanting to register as I to would like some loverley vat paid back, but thought I couldn,t. Toying with becoming a Ltd co at moment do any of the Mnetters out their know pro's and con's?

Sorry don't mean to hijack your thread your case does seem a little curious (that childcare costs can be damages ) hope you get sorted out, maybee they won't accept your reciepts cos it doesn't have minders name on - try and ask if you can swear an affadavid that the info is correct doesn't cost much and a lot less hassle.