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doing extra childca...
 
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[Solved] doing extra childcare - money/tax implications

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Posts: 2
Registered
Topic starter
(@dadforlifenotforchristmas)
New Member
Joined: 7 years ago

Hello All,

An unusual situation here.

There is a Childs arrangement order in place (usual with weekend access etc).
Now the children's Mother is struggling with her childcare arrangements and I offered to look after the children, as I was recently made redundant and unable to find another job for 6 months as on gardening leave.
She had a full time nanny before so is willing to pay me the going rate for childcare for the hours I cover (it will be a massive saving for her so win win). Say £20ph for a 20h week.
Question: Do I have to declare this as earnings /income and pay tax? Or register as self employed? It is technically a breach of the court contact order, do I need to notify the court and explain the situation?

7 Replies
Posts: 8551
 Mojo
Registered
(@Mojo)
Illustrious Member
Joined: 12 years ago

Hi there

I think youre allowed to earn a certain amount before you have to pay tax, but I'm not too up on the rules governing whether to contact them or not, hopefully someone should be along shortly that can answer your questions about this.

As far as the existing order is concerned, if you see your children more than is stated in the order it's ansolutely fine and not a breach, so you dont need to contact the court.

A breach would only happen if the resident parent didnt make the children available for the court ordered contact.

All the best

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Posts: 11890
 actd
Registered
(@dadmod4)
Illustrious Member
Joined: 15 years ago

I think you are required to declare all income. However, you are still allowed the personal tax allowance, so you don't pay tax on the first £11k of income.

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Posts: 8551
 Mojo
Registered
(@Mojo)
Illustrious Member
Joined: 12 years ago

Of course... I should have known that, I did know that! Doh! Senior moment :whistle:

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Posts: 2
Registered
Topic starter
(@dadforlifenotforchristmas)
New Member
Joined: 7 years ago

Thanks both

Yes I know about the tax allowance etc, my question was along the lines whether it is classified as income at all.
E.g. I am quite sure my ex never paid a penny in tax from the maintenance i paid her for the children previously (my lawyer asked for an expenditure report once to ensure the money were spent on the children and not elsewhere and the schedule she sent covered the full amount not the full amount less tax).
So if one ex spouse pays another ex spouse for something (say babysitting), is it still income? Or maintenance?

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