30 hours funding - got the code, what if I now can't earn quite enough?

[BellaBooHoo]

I spent the last 6 weeks before Easter working as a supply Teaching Assistant and earned mostly enough each week to qualify for a code for 30 hours funding which I have put in to cover 30 hours childcare for DS in nursery this summer term.

However, I am now worried that because my hours aren't guaranteed (temporary agency work where they just give you different schools each week), what happens if I don't get enough work from the agency to make up to 16 hours minimum wage? (I earned just under the earnings threshold for 2 of the weeks) Could I 'top -up' the the income with online work? Even matched betting? I would't feel right sitting at home not working when my child is in funded childcare.

How often do you have to apply for the code?

You could start a business and be self employed. Your earnings are then averaged out over the year to determine if you are eligible for childcare. So you could do the business when not in school and the wage and profits would be counted based on your tax return. In the first year of self employment you don't need to reach the earnings amount to be eligible for childcare, so it's worth a punt.

Your code is eligible for the next term then you will receive an email from Childcare choices to reconfirm your eligibility. So long as you’ve had regular work when you submit the update then the next code will see you through the autumn term

I don't have to apply for the code again as he'll be in school in September.

Really? I was semi-starting my own proofreading business but gave up as I didn't have enough time to dedicate to it. So it would be ok to do, say 12 hours paid TA work, and the other 4+ I could use to start my business, doing marketing, contacting potential clients etc? That would be ideal, if it's acceptable!

I think that now you have the code there are no more checks, so it doesn't matter how much you earn.
They recheck your eligibility when you renew, but seeing as you wont be renewing, I wouldn't worry.

Ok, that's great to know there's no pressure to get the hours if I can't get them. I'm sure I will, it's just not guaranteed, and I'd not want to be fraudulent.

Not sure how strict HMRC are. I got a warning saying my income wasn't enough, but that was before I put in my self assessment which then showed income was over the threshold. It didn't flag til end of tax year. You might want tax free childcare for wraparound so still worth thinking about eligibility.

I'm pretty sure you get a grace period to the end of the term even if you become ineligible.

This is for consistency for the dc, so they don't have their place withdrawn in the middle of term, which would ve very disruptive to them.

Ah yes, I had heard about the grace period, but wasn't sure if it would apply to me as I literally have just started working!

Does anyone know if you can combine different income sources to make up the 16 hours a week equivalent? e.g. TA job, plus a few bits of money earned online?

Yes if you register as self employed your profit could be zero for the first 12 months and you still qualify for the 30 hours.

Thanks Lilac, however, I am currently registered as self-employed as was a freelance worker several years ago, but no longer have that income stream. I think I would have to earn from iany self-employment now, though that may be an option if I tried really hard to get some online work (writing/proofreading).