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child minding and tax office

Last post Wed, Sep 09 2009, 9:20 AM by awuzu2009. 4 replies.
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  •  Wed, Sep 09 2009, 9:20 AM

    Re: child minding and tax office

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    many thanks everyone for your response. i will follow the advice given and update later.most appreciated.thanks.
    • Post Points: 5

  •  Tue, Sep 08 2009, 9:45 PM

    Re: child minding and tax office

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    awuzu - Write to this person who owes your Wife money for the services rendered and treat this matter in exactly the same manner as you would treat a bad debt that is owed to her. Outline the amount owed on a invoice with the letter showing the dates and services provided by her to which this long overdue debt relates, at the bottom of the letter give them a reasonable opportunity of 14 days to either settle the debt in full, or come to a satisfactory repayment arrangement with your Wife...... failure of which you intend to commence proceedings through the courts. !

    Send any correspondence by recorded delivery, then after 14 days if no response is forthcoming issue online court proceedings through the small claims court. Once you can demonstrate to the court that you have taken all reasonable measures to secure the return of the money, you are entitled to ask for the courts intervenention on your behalf, the loser pays the small costs.

    https://www.moneyclaim.gov.uk/csmco2/index.jsp

    As for the concern of your Wife worrying about being liable for income tax, if you do actually manage to get this money then declare it..........if you don't, then notify the IR this amount is a bad debt and unfortunately was not recoverable.

    As tt lady explains; they only expect you to pay income tax on money that has been earned or actually received, they would simply write off the tax on this debt if you are unable to recover it, especially after you have made the efforts above...do however keep all copies of paperwork that would prove this fact in the unlikely event you are unsuccessful.
    • Post Points: 50

  •  Tue, Sep 08 2009, 9:13 PM

    Re: child minding and tax office

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    I assume there is a written agreement between your wife and the person in question which states what is owed during teh holidays (usually 50% I think) ? if so then you need to go down the route of sending her a polite but firm letter telling her what she is due to pay and then follow up with a solicitors letter threatening court. That ought to get her to pay up.

    If you haven't got a written agreement then you will have a harder time getting enforcement but a verbal agreement is still binding. It shouldn't matter to your wife where the funding comes from - you need to concentrate on getting the agreed amount from the families you are providing a service to and forget about the fact that she may be getting free money form the taxman.

    In future make sure your wife invoices up front and has a firm written agreement signed by both parties.

    She won't have to pay tax on income she has never had.

    • Post Points: 5

  •  Tue, Sep 08 2009, 9:03 PM

    Re: child minding and tax office

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    thanks for the reply,Karen.the issue is she has not been bringing her child for the past 6 weeks as school has been on vacation and rightly so.

    This womans argument seems to be that as the kids are on holidays,she is entitled to at least the 6 weeks money she has been receiving from the tax office(even though her receipt of this money is based on the fact that she used my wifes child minding id/number). Also child minders do get paid during holidays. she has offered to pay back the money she got from june till schools went on vacation. we have to wait and see if she does.

    assuming she is right and she keeps the money for the 6 weeks holiday(school break),will the tax office expect my wife to pay tax on this money-obviously not. the tax office will therefore be giving free money to mothers during the school holidays.

    i think this whole government help with child minding is completely flawed.

    i hope some one has some first hand esperience with this and can share some information with me.sorry for going on for a bit too long, but this whole thing is beginning to give me headaches.
    • Post Points: 20

  •  Tue, Sep 08 2009, 2:05 PM

    child minding and tax office

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    hi,

    my wife has recently started working as a registered child minder.she gave her child minding id to a lady who requested for her services.this is the id that mums present to the tax office so that the government pays %80 percent of their child minding cost.

    unfortunately the tax office pays this money straight to the mother and not the child minder.the problem is that this lady is keeping the money and not passing it on to my wife.she has been keepng the money from june(over £1500) .she lied that she has not heard anything from the tax office. my wife confronted her and then she admitted that the tax office have been paying the money since june 09.my wife will however have to pay tax(i believe) on this money and my wife is not receiving the money. as far as the taxman is concerned, this money is going to a child minder and the tax office has my wifes id as a registered childminder.

    we tried to get some info on this but everyone we spoke to said the tax office will do nothing about it for years.we are worried that years down the line,my wife will get letter from the tax office saying she has not paid the correct tax on her earnings.it will also be too late to even trace this woman who is keeping the money.

    has anyone got some esperience of this issue or any information that will help us sort this problem out.
    • Post Points: 20