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  #1  
Unread 08-13-2011, 11:49 PM
sabm sabm is offline
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Tax Credits Payments / parents!

Hi there, i'm new to this forum but have been childminding for 4 years.
2 of my close friends are also childminders.
We have had problems with a few parents who claim tax credits, not paying on time, owing money and generally not sticking to the terms of the contract, i.e, a child was ill, had been sick so i refused to care for him, the parent made a fuss that she had still got to pay, i said it is stop spread of infection and it states in contract and my policies that full pay is till required.
We were wonering if any other childminders have trouble at times with parents paying....and ould it be worth starting a petition to send to Inland Revenue / Government to get the childcare element of tax credits paid DIRECTLY into the childminders bank! This would stop the parents thinking it is their money to spend on clothes, the car etc etc, and also cut down alot of raudulent claims!!
What do other childminders think????
Cheers
Chantelle
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  #2  
Unread 08-19-2011, 01:49 PM
Gigglemonsters Gigglemonsters is offline
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Hi Chantelle, I completely agree with you hun as I've got a very similar parent & have had parents telling WFTC I'm looking after their children, claiming the money & then not using me! Think the system needs looking at again and we "childminder" should be able to tell them when we know people are claiming incorrectly
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  #3  
Unread 08-19-2011, 06:02 PM
Heidi Heidi is offline
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Default Non Payment of Fees

Quote:
Originally Posted by CLWchildcare View Post
Hi there, i'm new to this forum but have been childminding for 4 years.
2 of my close friends are also childminders.
We have had problems with a few parents who claim tax credits, not paying on time, owing money and generally not sticking to the terms of the contract, i.e, a child was ill, had been sick so i refused to care for him, the parent made a fuss that she had still got to pay, i said it is stop spread of infection and it states in contract and my policies that full pay is till required.
We were wonering if any other childminders have trouble at times with parents paying....and ould it be worth starting a petition to send to Inland Revenue / Government to get the childcare element of tax credits paid DIRECTLY into the childminders bank! This would stop the parents thinking it is their money to spend on clothes, the car etc etc, and also cut down alot of raudulent claims!!
What do other childminders think????
Cheers
Chantelle
I am not a childminder, I run a Pre-school, but this happens right across the board. To try and prevent it happening again, you need to look at you policies and procedures and add/adapt/adjust - whatever is needed to prevent (or very nearly) it happening again. When it 'happens' the next time, you have a word with the parent, give them a letter which states something like '...all outstanding fees must be paid within two weeks, and if they are not, your child's place will be removed. Add something like '.Pixie Childminders have a waiting list and your child's place will be offered to them. It distances you a little rather than saying 'Oh, by the way, I've got a letter here for the £300 you owe me.

If you haven't got one - make up a welcome letter and in bold print add that all fees are to be paid in advanced to Pixie Childminders(take the first month before they start) and state non payment of fees are not permitted and places will be withdrawn immediately and given to others on the waiting list.

Even if you didn't get someone immediately, you aren't earning anything, just paying out for services and with your time, and it's natural to become resentful - everyone works to earn a living, even if we think it's the best job in the world, we all still have bills to pay.

If you have done all of the above, then you must toughten up and carry it out every single time. get your policy book out and read it to them. Make the letters (especially about money ) appear as if it's your accountant writing them- if it helps you to 'throw what you're saying' onto someone else - as it's sometimes hard to be 'tough' with parents you have become very close to.
In your welcome letter state that your books are given to your accountant every month who will see that they are in order.

If a parent is told all this professionally but firmly and has it explained when they first visit that if it happens, you carry out your policy and procedure immediately so that you remain in business. Even put a clause in your welcome letter/pack that states payment is still required in advance whatever the circumstances i.e. delayed salary or tax credits. Pixie Childminders does not enter into 'loans' or delayed payments.
If they say they are short of money explain they will need to see their Bank manager - because that is what you would have to do if they didn't pay you, or if you were short of money. Don't let them start to 'use' you, as often they tell their friends, who think they'll use someone who seems a little lenient on fees.

Get together with your friends, write up a policy that you could all use- more heads are better than one.
Don't get up a petition for the Inland Revenue/ government etc - the answer will be 'it's not their problem , and may suggest you tighten up your lax collection of fees'. Remember they won't (and don't need to) understand the problems that you are experiencing - they'll have their own!

I hope you can take something positive from this and get something drawn up and implemented. if your parents are still using your service - hand them the new/amended welcome letter, place a short covering letter explaining that you have nearly gone out of business this year and therefore with the advice from your accountant are now having to implement firm fees payment and add something like I trust that you will understand that these measures will ensure that I can give the very best care and education to your children.

Draw up a new parent contract and give this to them, hand it over with the new welcome letter above and ask them to sign it. You could also add in future contracts something like '... parent contracts are renewed annually every September (or whenever) when fees are revised due to spiralling cost etc. This will take care of that without the embarassment of having to mention it when you feel they need to go up. Start as you mean to go on, and after speaking to your next few set of parents it will become easier.

Remember though for genuine cases of hardship, if a child is not entitled to free funding (3 & over) some counties are given government funding for free childcare places for 2 year old children. Contact your Early years team in your county to see if you are able to offer these.
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  #4  
Unread 09-24-2011, 09:43 PM
sabm sabm is offline
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i already have in place a welcome pack which states payment in advance, a late payment charge each day when payment is late and refusal of childcare if fees are 2 weeks late. I think they see us as a person rather than a business. it is very hard to get them to pay when they owe money as they keep on claiming the tax credits and go and find another childminder when you refuse care due to non payment!
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  #5  
Unread 09-24-2011, 09:58 PM
nazish nazish is offline
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u need to take money off them in advance fr 4 weeks then u care for them and if not paid on time the advance when they bring the child refuse to care unless u get ur money for the 4 weeks u are going to look after them.if keeps on messing about report them to tax credit explining the issue to them.
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  #6  
Unread 01-30-2012, 03:01 PM
Petal291 Petal291 is offline
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I have had the same problem in the past, looked after a baby who's mummy was single parent but worked full time. She got paid her holidays, bank holidays and got paid if she had to take time off as baby was sick!!!
She also told tax credits that i looked after baby full pay for 52 weeks of the year. Even though I took four weeks UNPAID holiday per year and didnt' charge for bank holidays. So she was pocketing the money from tax credits.
I advised her that she should be telling tax credits that she wasn't paing me for four weeks holiday nor for bank holidays, which i am quite certain she didn't.
There is a number specificallly for childminerds which tax credits have set up to "tell on" parents who claim when they're not paying us!!!!
If you call tax credits i'm sure they will give you the number.
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