mums netters help me out....is this wrong?

[binkybink]

is it true you can get into trouble for using some one childcare and paying cash in hand?

my friend has recently left working in a nursery and has now started to "baby sit" a child that still goes to that nursery for 2 days a week,

she works from 7.30am - 6pm for £45 a day she is soon to start looking at least two other children for the same rate. this would mean having at least 3 children @ one time in one of the childrens homes.
she also smugly told me that se could be making £225 a week tax free. (she doesnt claim benefits)

now i know i sound jelous, but i dont think this is right as i work very hard tring to entertain the children i look after where she just lazes around watching t.v ( the parents just want their son supervised, hes 2)

what do you think guys? let me know

of course it is wrong

she need to be registered as a childminder, and she needs to declare her earnings

it's wrong

she may well have recent first aid and child protection knowledge from her job but she'll not have public liability insurance - imagine if something awful happened and there was no insurance to pay for the consequences

Also if she is preparing food, even slicing fruit, then she needs to register with Environmental Health

in someone elses home with more than 2 families involved they must become a childminder (registered with all the costs that involved) and so pressumably declare their own income as self-employed.

Even if she sticks to one or two families as a nanny, by doing it cash in hand she will possibly be missing out on paid holiday and definitely on maternity and NI contributions i.e. her pension. In this case it would be illegal for the parents who could get chased and fined for not paying her tax. It is unfair of her if she knows this not to make it clear to them.

And without a written contract all parties are asking for trouble. So important to deal with tensions early when children are involved. Not to mention lack of insurance if anything went wrong with the little ones.

She could really influence and enrich this child's early development and later life- would she really rather watch tv? how dull for her and depressing for the children. I'm sure your children will thrive and have a great start in life because of all your hard work. Plus you save the money and time she'd have to spend at the gym.

Cash in hand - yes. She's also shooting herself in the foot with no NI and no contract.

£45 a day is probably below min wage for her as well, so she even if she were paying tax/NI she'd end up with more money!

Multiple children? Possibly wrong. She can have 2 different families with unlimited children in a child's own home. But 3 from 3 diff families at the same time would wrong as it's classified as CMing.

Insurance is absolutely vital. Just in case... Not just from an accident POV either but also legal advice.

And you say you're her friend!!!!!!

If she were my friend, I would point out that should anything go wrong, for example, a child in her care ends up in hospital with a broken arm, she had better hope and pray that the duty social workers, doctors, police officers, HMRC and the rest are having a really good day and are feeling very lenient.

She is cheating on the HMRC, cheating on OFSTED, plus working without insurance, putting herself at enormous risk. She is also putting her childcare career at risk.

I can assure you, that should anything happen, the parents will claim ignorance and at worst, your friend could end up in jail and never be able or be allowed to work with children again.

The liabilities she is taking on are enormous. Ask her, for the sake of a miserly £225 tax free per week, is it really worth it?

By miserly £225 tax free per week, I mean 'miserly' since as someone has already pointed out, she would only pay tax at 20% on about £4,000 of her yearly income (£225 x 4 x 12 = £10,800 take away year tax allowance currently £6,475 = £4325) which she could easily offset against business expenses and pay next to nothing in tax.

Silly is it not?

thanks 4 reply ill let her know, though she isn't one to listen because i know what her response will be: im going to college in sept this is a ittle summer job.

but for the sake of the childrens safety i ought to tell her.

Being a registered cm won't make the children 100% safe but the fact she just seems to care about the money probably means it is more likely than something could happen. Slack attitide.

yes when she was in the nursery she seemed so interested in the childrens well being, but since shes left she has developed this slack attitude where i think she got from being treated badly an the nursery.

"im going to college in sept this is a ittle summer job."

In which case, she would pay no tax anyway.

She's an adult. Only she can live her life. If I were you, I would warn/advice her
of the liabilities, then keep my distance.

I really sympathise about her being treated badly at the nursery - it happens. However, the excuse "I was badly treated when I worked at the nursery, hence the slackness now" will not wash with the authorities.