Help!! I haven’t made enough money to meet childcare requirements

[SackJellington]

So 1 DC in nursery. I started my business last year and had 12 months at 30 free hours. In January when I submit my accounts it will be clear I haven’t made enough money as my 12 months will be up.

So what happens? They say there is a grace period. How long is it? When will I get cut down to 15 hours? I am not complaining, I get why this has happened, just trying to get an idea of what will happen going forward.

I’m such a failure. I don’t think we will be able to afford the extra hours so DC will have to scale back potentially which will be tricky. I am looking for alternative work now as I have to accept my business has failed.

Only scanned but am I right in thinking the OP is self employed, on Universal Credit and now affected by the Minimum Income Floor?

Don't you have to reconfirm every 3 months?

They promised the work then withdrew. I didn’t think that would happen, it all seemed so set. So I have evidence of it happening, but I don’t know if that’s enough to stop me getting penalised? I thought they’d withdraw the funding but not potentially fine me or something. I’m so panicked now.

Yes but I thought the money was coming.

No, my second post sums it up better

For gods sakes, yes I’ve been working!! I have been working on it. But it’s fallen through and funding has been withdrawn.

Will you seriously stop?! You’re not a nice person. Quit trying to trip me up. I’m not repeating it again. I have been working.

NO I HAVENT.

please, enough.

Yes!!! I and I can’t do anything else with it.

Thats how this line of work goes, but I have been stupid to assume it wouldn’t happen to me.

Please stop, I’m already in floods of tears right now, please stop making it worse.

Ah I'm in a similar boat. It asked me if I expected to earn a certain amount a week and I am meant to be starting a job so I did only NOW they've recinded the offer

It isn't viable as any kind of income, Hopefully it will grow. But you need to run it alongside a job paying a proper wage.

So helpful, thanks

I know, I’m looking for a normal job and have been applying. It’s all a mess.

Got it now.

It's not about UC but the amount of free childcare you get.

Apologies for the derail!!

What have you done about it? Or have you earned enough to keep going?

It’s so confusing and messy and I’m so upset by it all. I didn’t think this would happen and now I don’t know what to do. All that time and nothing to show for it, but I may have to pull DC out of a childcare setting they love.

Well I only posted this morning on here about it. I'm going to phone hmrc on Monday. I was trying to be organised and already sent the childcare provider the money 😥

I'm sorry people are being so rude and unkind OP. I don't know anything about the tax/free childcare situation, but is there something about how you contract around your work if you can just work for so long on a project and then they can say no thanks? It seems wonky if what you're then left with has no value and you have no way of charging for your costs.

Op, you won't get penalised if it's only been 12 months - there is no min income in that period.

When exactly is the 12 months up? When you reconfirm, say you do not expect to work the equivalent of NMW for the next 3 months.

I've found the HMRC childcare helpline helpful (but waiting times can be long). It might be worth asking them to go through the process with you.

OP, I know nothing about child care funding but I just wanted to say do not beat yourself up for having a business idea fail. Successful entrepreneurs' have MANY ideas that fail - it doesn't make YOU a failure. I am a business journalist and I interview people all the time about their businesses and very, very few are successful with their first idea. But we need people like this to generate new businesses, jobs and income, so I salute you for trying.

Yep, and this is exactly why there is no min for the first year!

No.

Okay thank you, this is helpful to know. I will be asked to resubmit in January, so I hope to have secured some other work by then and maybe try this in my spare time. Or just give it up.