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.

God this is so reassuring, I have been sitting here sobbing thinking they were going to suddenly ask for money back that I don’t have.

Goodness sake people who don't know what they are talking about need to not post!
op what date did you register as self employed and what date is your next code renewal date due, if you tell me those I can work out when your childcare will end. It will probably be around March April but I can tell you fur sure when you reply.

Please don't give up on the self employed idea. But yes might be an idea to have it as a "side hustle"

Surely getting a minimum wage job for 16 hours isn't going to be hard OP? I assume your family is quite comfortable or you wouldn't have been able to do this in the first place?

I think it is fraudulent that you've been reconfirming that you've been earning for a year, I'm not sure which other word describes that.

So is it some form of art?you were creating something they paid 1k deposit, you’ve been at it for 9 months, and now they’ve seen it they don’t want it?

I’ve been applying.

How is it fraudulent when I’ve done the work and been expecting to earn the money for it?

No, this ain’t quite correct. But thanks for your attempt at being extremely unpleasant.

I apologize, I've just checked the advice and it does say you can confirm if you 'expect' to get the money. Seems a flawed system.

Does definitely say if you started your business less that 12 months ago you can earn less though, so you should be fine..

I think it will all be fine 🙂

If you renew your code between January 1st and February 10th which I am guessing will be your dates. Your 30 hours will run out on on April 1st 2025 so the last day will be March 2025.

I registered January and I’m next due to submit in September. I’m happy to say i won’t earn it, I’m not trying to defraud anyone, I just posted as I wanted a picture of what would happen so I’ve got it in mind going forward should I not secure work in the meantime.

Thank you for being kind and understanding. I’m so confused with it all and so blindsided.

Thanks for this, I’ve been trying to read up and I’ve been so lost with it all.

Thank you.

@SackJellington Sounds as if you have kept reapplying for the childcare every 3 months and getting a code based on your expected earnings. You no longer have those earnings, so is it not just a case that if you don't get a job before your next renewal you simply don't get a new code and drop to 15 hours childcare until you do get a job?

There are many kinds of childcare and you weren't clear on which one which I think has caused confusion on the thread.

Yes this is what I assumed would happen but I wanted to know when, what would happen when I do get a job (will I be able to increase or is that it?) and later if I would be penalised.

Im so confused myself to be honest!

You don't get a new code after 12 months if you aren't earning enough, however you have a grace period of approximately 3 months after not being able to renew a code where the 30 hours continue. So you essentially have the 30 hours for 15 months not 12.

I don’t think anything will happen apart from no further money. I know lots of mature uni students who say they are doing nails, etc as a self employed business to get childcare for a year knowing full well they’re going to be nowhere near the minimum amount needed. Lots just do one persons nails so they can say they did something. Never heard of anything happening to anyone.

Nursery will be able to tell you the exact end date of the grace period as that informs is available to them on the funding portal.

Yeah thats the same issue I'm having. I expected to earn the money. Now I wont

Oh wow, so they knowingly defraud the system? I can why people are angry at me if that’s what they think I’ve been doing, I truly haven’t. I’ve just been…extremely stupid I guess.

I’m glad they likely aren’t going to fine me though, it’s been hard enough watching everything go up in smoke.

I’m so sorry this happened to you. It’s so devastating.

Don’t feel bad. Most businesses lose money for the first year to 3 years. It’s hard, especially in creative. Go to your local council and ask what business help they have and take it all. Get involved and do all the courses they have - usually free. And don’t give up if you believe in it. Takes time to make a name for yourself and, despite what some people think, it can take years of nothing before suddenly things start happening. Find a part time job with zero hours contract and as soon as you can quit.

also, it does seem unusual to take no upfront payment - like a third or just a deposit. Maybe this is something your local business advisor could help with as there might be better ways to do this. Would be helpful to know what business though as maybe people here could advise too

Thank you so much. I did it in my spare time when my DC was little and had so many compliments and took on a few contracts so I thought it would be okay. Then this contract came in so I went for it. Now it’s fallen through and I just feel so deflated. I really thought I’d found my calling.

I will get some standard work sorted and pay my way. and then go from there. X

that wasn’t my intent.im sorry. I simply don’t understand how you can work on something for 9 months full time and the customer then says no, unless it’s art work and you said it was similar to a sculpture. I don’t understand how it can happen as I assume the customer was kept appraised throughout.

Yes I mentioned in my previous post the grace period is into the next term but ultimately if the OP doesn't get a job by then all she will need to do is drop her CC hours. I think some people were linking the minimum income floor to UC which is not the case.

Thing is with many new businesses it can take a good few years to make profits, if everyone gave up we've have no companies.

OP can you not carry on running it get the new contracts over the line and let DH pick up the cost for the extra 15 hours. Seems a waste to just stop even 1k is better than a loss.

Then you haven't wasted the last year and you can keep trying to get profits.

Sorry, I’m upset and I’m triggered. I don’t want to say too much as it’s quite outing and I know people on here. If I give details then they’ll know it’s me and I don’t want my personal finances to be known.

They hadn’t seen the work to end the contract, it’s not quite finished yet. But they changed their mind essentially.

Typically, deposits aren’t given in this line of work and this can happen. I’ve been very stupid and naive to drop all other work possibilities to focus on this. I should have known it was too good to be true, especially for a newish person.