Is this invoice right?

[FredTed]

Our nursery has recently been taken over (well actually shut down and a new nursery opened in the same building, but with a new ofsted registration, new manager etc). We were told we could continue with our existing arrangements, as it was previously a term-time only pre-school type of nursery, whereas now it is 8am-6pm all year round. We used to pay termly but will now be paying monthly, the same each month apparently, rather than a bill for the actual hours attended each month.
Anyway, we have had our first invoice for the coming month. It gives a total cost of £59.80 for the sessions (one 3-hour session per week). Apparently this is the hourly cost of £4.60 x 3 hours x 4.3333 weeks, to allow for longer and shorter months. I totally get that this is not a massively expensive bill, but it doesn't seem right for a term time only arrangement. I have asked them, but just wondered if this is normal? As it seems to me like we will be paying for a place all year round with this calculation, not term time only.

It sounds like their hourly rate is usually more than £4.60 per hour, but when divided over 12 months, equates to the £4.60 x 3 x 4.333.

You need to ask them what their hourly rate is before you will be able to work out whether the invoice is correct.

How old is your dc?

That doesn’t look like term time only to me. Term Time is usually 38 weeks. I’d expect your bill to be £4.60 x 3 x 38 / 12 = 43.70.

Maybe it is that then, although they haven't mentioned having different rates for different arrangements. I will ask that, thanks.

We used to pay £195 ish for the term, so over the 4 months of this term it works out quite a lot more, if it is right, and if they do invoice the same each month.

He is 2.

Yes you would pay all year round if you are paying a set amount each month in that way. That works out the cosy for a full years attendance. They've probably just made a mistake.

How many weeks a year are term time? 38? (I've no clue). In which case surely it should be
4.60×3 =13.80 per week
13.80×38=524.40 for all weeks
524.40÷12= £43.70 to get a monthly amount.

Previously you were term time only... so that was perhaps 38 or 39 weeks per year. Is your child still going to attend just term time, or are they now going to attend all year?

3 hours x 38 weeks = 114 hours @ £4.60 = £524.40 annual, £43.70 monthly.
3 hours x 52 weeks = 156 hours @ £4.60 = £670.80 annual, £55.90 monthly.

The 4.3333 thing looks odd to me. The examples above take the annual and divide by 12 which is what I would expect when spreading it over monthly payments. Definitely seems wrong for term-time only, figure is closer to the all year round... assuming the £4.60 per hour is correct.

I used to childmind, and term time only children had their weekly rate x 38 weeks and then divided by 12. So parents paid the same amount each month in advance.
For £4.80 an hour x 3 hours a week this would be £45.60 a month for example (sorry can’t remember the exact amount you said in your OP)

The figure you’ve given is the weekly amount x 52 weeks in a year, divided by 12.
They’ve not worked it out term time only.

£4.60 x 3 hours x 52 weeks, divided by 12 is £59.80 per month 👍🏻

Thanks all, what you have said is pretty much how I expected it to be really. I had tried lots of those calculations and similar myself and not got to their figure, so I asked for more info. (The invoice only had the total not a breakdown or anything). That is when I was told the £4.60 x 3 hours x 4.3333 calculation, which does sort of make sense if he was going all year round I suppose - although the total cost divided by 12 is much more logical!!

Yes he was term time only before, which fitted with school terms, I think it was 38 weeks. He is still going to be term time only.

I will ask again I think!

Yep, I agree 0123453210backwards. Sorry FredTed, Think my finger slipped on the calc and did 4.30 not 4.60.

3 hours x 52 weeks = 156 hours @ £4.60 = £717.60 annual.

So they are not doing term time only, they are doing all year round.

52/12=4.33333

That’s why 4.33333

The new people doing invoices have probably just missed that some of the old clients are term time only.

They’ve billed you for the full year, not term time only (not even allowed for any closures....... are they open Christmas Day???)

Call them, it, probably a simple error. Tbh with a new and entirely separate business, I think it would be better for them to draw up new contracts.

Personally I’d avoid these 'averaged' invoices like the plague. They can result in lengthy and acrimonious disputes over actual attendance or funded hours when a child leaves part way through the year.