Step Mil looking to become a childminder - will i be able to use her and claim tax credits?

[BabyDubsEverywhere]

What it says in the title really. Does anybody know if i would be able to use my Step MIL as a childminder for my two when i return to work. She will need paying, only right, and i can't really afford to pay her if i wont get it back in tax credits. She's willing to do the training and register and pay tax etc but will being family make it void iykwim?

So grateful for any advise. x

I think she would have to care for other children too fr you to claim TC

NannyNick will know

As long as she is willing to take other children who are not family.
So she would need to to advertise and make sure she is on the FIS/CIS website.

I'm not too sure if I'm right, but I don't think she has to take other children on. BUT you can only claim tax credits if she looks after your children 'outside of their home' so if she would be coming over to look after them then no, but if you drop them off with her each morning then yes. (as far as I understand it anyway)

I would be dropping them off in the mornings at her house, she will keep them there/ take them out, then drop them back to me. Or would i have to pick them up?

What if she waa willing to care for other children, as in advertised etc, but just didnt?

Oh its a mine field isn't in. Does anyone know where i could find out for sure? I can't imagine leaving my 6 month old with anyone else at the moment and i really need to get back to work - all fun being a mum eh!

Thankyou

As long as she is open to others,if she never found any other children then she couldn't look after them could she!

She would have to do all the EYFS etc with them.

thats brilliant news, thank you soo much x

The Childcare Act 2006 defines what is considered to be a relative,
18 (8) (c) ?relative?, in relation to a child, means a grandparent, aunt, uncle,
brother or sister, whether of the full blood or half blood or by marriage or civil partnership.

So what your Step MIL as a relation to your children? I think that your Step MIL is your DP's Mother (is that right), which thus makes them your children's Step Grandparent I think - does anyone understand all these names?
So if they are a Grandparent to your children, then they aren't full blood, but are they half blood? Are you married to your DP, or only co-habiting?

Please can read page 19 of HMRC Publication: WTC2 section titled: Childcare Provided By A Relative.
Childcare Element of Working Tax Credit cannot be used for childcare provided by a relative, unless that relative is a Registered Childminder who is ALSO looking after other children.

HMRC and Ofsted are both aware that relatives are trying to register as childminders only to care for their grandchildren, nephews etc. How they actually check-up on that, I don't know... but I suspect that if when doing registration inspection or subsequent inspections the Ofsted inspector gets suspicious that the children in the persons care are ONLY relatives, that then action maybe taken.

It may be risky, but exactly how risky I don't know. Certainly HMRC, DWP and Ofsted are aware it occurs... so I would suspect that there are things being done to spot these occasions when a childminder only cares for relatives.

Tax credits do random checks where care is being provided by a relative. If she never has any other mindees they can say she only registered for you to gain benefits and can make you pay it all back.

If she is not prepared to be a true childminder then can you not arrange a lower payment - presumambly she is free anyway so not losing wages etc.

Just looked on a few sites, it says relatives are excluded from tax credits childcare help for childminding unless that have at least one other non-related mindee. So simply advertising wont cover her as meeting the criteria.

"Under the Children (NI) Order 1995
those exempt from registration include
'..a relative (defined as) (a parent,
grandparent, brother, sister, uncle,
aunt, step-parent and by affinity) of
the child'. This means that parents
who make the personal choice to
leave children with relatives cannot
claim financial help with childcare
costs through the childcare element of
Tax Credits or childcare vouchers.
However, a relative, such as a
grandparent for example, can become
registered as a childminder so long as
they look after at least one other nonrelated
child."

hmmmm,

Step MIL is my partners Step Mother, so My Childrens Step Nan, and my partner and I are getting married in June.

DS is 20 months, DD is 6 Months. We were planning on paying her £200 per week for looking after them. She couldn't afford to do it for free, and wouldnt expect her too either really. Some weeks they will need 5 days with her other weeks 1 and the varying degrees in between. My partner works on a very irregular rota, and i will be looking at 3-4 days a week. The main problem ive got is that i dont know how else i can work. I dont drive and need my partner to drop the kids at 'childcare' before and pick up after work. He starts at 7.30, but Step MIL lives round the corner from his work so cud drop n run at 7.20 ish. He couldnt pick them up til 6.30, and most the nurseries we've looked at are 8-6. Plus no where will accomodate the flexibility week to week.

I havent worked since 2006 so dont imagine im going to be snapped up. Sure ill have plenty of time to work it out. Just cant imagine leaving my baby girl with anyone else

hmmm, my sisters baby is due in June. could i pay for my Step MIL to look after the baby 1 day a week then she could class herself as a real childminder. If it was all on the books etc would this work?

So my sisters baby would be the childminders step daughter in laws nephew/neice. Is that too related or not?

So sorry if i'm asking really stupid questions, and i really am very grateful for all your help.

Still related so I wouldnt risk it. Plus if you're trying to save money it goes against that. Also for one day a week she would still have the rest of the days where she needs a mindee.

Personally, if MIL is only doing this as a favour for you then I would seek childcare elsewhere. By the time she has registered, kept her house to the minimum standards required, displayed the docs etc she needs to, satisfied Ofsted with all the paperwork needed daily plus having to take on mindees that are not related she may not be so keen.

What about looking for night work, pubs, supermarkets etc all have evening hours.

Thanks for all your help, think its back to the drawing board for a while. x

I was told by an ofsted inspector (friend) that so long as the Childminder (relative) is attempting to get other children, and is doing all the EYFS requirements then there is not a problem.

She also said that as long as her fees are in line with other local childminders, then the Tax Credit people are happy.

They would struggle to enforce the rule about having to look after a non related child, as childminders often are no full as there isn't always the work available.

It would be dodgy you paying for your sisters baby's childcare, however if your sister paid it then I can not see anything wrong.

Do you have to claim tax credits?
Sure they will pay £160 towards your £200 bill but given all the hassle involved for your Step MIL, is it worth it? Would your MIL accept less money - to avoid the need to register as a childminder... or does she need to have a declared income. Does your Step MIL really realise all that she would need to do to be a registered childminder?

Would a more viable option be to split the care between more than one provider... so your Step MIL doing some days, while another registered provider does other days (for which you then use the tax credits).

How much are childminder rates in your area... is £200 per week actually a likely amount for the care of two children - given the hours and flexibility you require? Certainly in my area (West Surrey/East Berkshire) it would cost a lot more.

To be honest, I dont want anyone else to look after my children. She is fantastic with them bith and we all have a very positive relationship. She would love to be able to be a full time nan, no wages, just with them all the time. But then the bills come through the door and reality hits - she cant afford to not be earning. £200.00 per week seemed about going rate round here. £25 per child per day, 4 days a week. most weeks it will only be 2 days, depending on Dps rota, but Mil needs a working wage, and i want the reliability of knowing shes available any time we need her. She knows what she needs to do to register. its something she was looking at doing anyway, she loves kids. I know this probably seems an odd arrangement, but it really is our ideal, mine and Mil. She gets to be nanny all day and doesnt have to work - (not saying childminding isnt work just that she hates current job and would love to do this, therefore not seeming like work to her iykwim.) Oh and I cant really afford to do it with out the tax credits. I will only earn £180.00 per week. If i cant get tax credits to pay MIL my babies are going to have to go to a nursery. But that just isnt what i want. being bratty i lknow. Thats why we're investigating options at the moment though.

It isn't an odd arrangement at all, many grandparents care for their grandchildren.
The problem is purely over the payment side of things, as our current Government feels that grandparents should care for their grandchildren out of the kindness of their heart.
The law as I see it is such that if your Step MIL registers as a childminder, then cares for a child who is totally unrelated to them... then they can then also care for your children and you can pay via tax credits.
But if they are not caring for that unrelated child, then it's a bit dodgy.

It's a pain really... tax credits are there to help you get back to work, yet are not flexible enough to enable you to select who you feel is the best childcarer for your children.

What you are proposing is possible but you and your Step MIL need to be aware that the rules exist and could be changed in the future.

Thank you for all you help and advice. It does feel a bit impossible at the moment. I know its not, most mums these day do it - i just honestly dont get how!

Ive been trawling the net all day, i cant find anywhere that states how often there needs to be another mindee in her care, do you know? Will there need to be an unrelated mindee at all time that my children are present, or could it be that so long as there was one on the books so to speak? Im sure she would love to have my sisters baby for an afternoon a week as well. and my sis would definatly enjoy the time driving me round shoppin hehe.

the bad thing is she would love to care for her grandchildren out of the goodness of her heart - but people need to eat! oh well. Thanks again

I doubt you will ever find the information you are looking for... the powers at be just won't publish that sort of info. If the powers at be don't publish anything, they can then decide on a case-by-case basis as to what evidence they require. Until a childminder takes Ofsted to the Care Standards Tribunal over this, I don't think we will ever know for sure.

My guess is that it would be sufficient to have an unrelated child on the books. That way the childminder is showing that their childcare facility is open to anyone enquiring, not just relatives.

National Childminding Association advice line is 0800 169 4486, says it gives advice about becoming a childminder. might be worth mil giving them a ring. It takes a while to register as well, my registration took 6 months, she will need to do training courses before she registers so it might be worth looking into it fairly quickly if you will need her any time soon.

I obviously don't know for sure but I would imagine that the other mindee wouldn't have to be there all the time your dc's are that wouldn't be a normal cm situtation either really would it because not all parents work the same hours but she would have to be open to and caring for other poeples child/ren as well.

it would be very strange if another child had to be there all the time, most of the cm I know have not filled all their vacancies - what would they expect her to do if someone lost their job and didnt need her, would she be expected to stop looking after her grandchildren. I guess she just has to prove she is a proper minder, thee alternative is ridiculous