Sunday 24 May 2009

Can a Relative of mine Register as a Nanny so I am able to pay them using Childcare Element of Working Tax Credit?


The Childcare Act 2006 defines what is considered to be a relative,

18 (8) (c) “relative”, in relation to a child, means a grandparent, aunt, uncle,
brother or sister, whether of the full blood or half blood or by marriage or civil partnership.

Page 19 of HMRC Publication: WTC2 section titled: Childcare Provided By A Relative.
Childcare Element of Working Tax Credit cannot be used for childcare provided by a relative, unless that relative is a Registered Childminder who is also looking after other children.

HMRC and Ofsted are both aware that relatives are trying to register as childminders only to care for their grandchildren, nephews etc. How they actually check-up on that, I don't know... but I suspect that if when doing a registration inspection or subsequent inspections the Ofsted inspector gets suspicious that the children in the persons care are ONLY relatives, then action maybe taken.

Therefore I feel that NO you cannot ask a relative to register as a Nanny, or as a childminder so that you are able to pay them for providing childcare via the Childcare Element of Working Tax Credit.

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