Paying For Non-Official Child Care - Any tricks?

[vwdan]

Blatant tax avoidance question incoming!

Looks like my retired father is going to take on a substantial role with our child care later this year and I'll be paying him something close to market rates (As he's going to give up his current part time job).

Is there anything I can do other than draw dividends and pay him, letting him deal with his own tax affairs?

I doubt it, having looked around, but just wondered if anyone had any hints or tips.

[pr1]

Blatant tax avoidance question incoming!

Looks like my retired father is going to take on a substantial role with our child care later this year and I'll be paying him something close to market rates (As he's going to give up his current part time job).

Is there anything I can do other than draw dividends and pay him, letting him deal with his own tax affairs?

I doubt it, having looked around, but just wondered if anyone had any hints or tips.

https://www.gov.uk/register-childmin...vider/overview

[vwdan]

https://www.gov.uk/register-childmin...vider/overview

He's exempt, as he's related. In fact, I'm not sure he CAN register because he's related.

[pr1]

He's exempt, as he's related. In fact, I'm not sure he CAN register because he's related.

but if he registers as an ofsted child minder (irrespective of who he intends to care for) then he can probably be paid as such and therefore it could be paid out of childcare vouchers through company (£243/mo)

IANAA/IANAL

[TheCyclingProgrammer]

but if he registers as an ofsted child minder (irrespective of who he intends to care for) then he can probably be paid as such and therefore it could be paid out of childcare vouchers through company (£243/mo)

Possibly, but probably not.

Qualifying child-care is outlined on this manual page, take note of the last section in particular:

https://www.gov.uk/hmrc-internal-man...anual/eim22030

[pr1]

Possibly, but probably not.

Qualifying child-care is outlined on this manual page, take note of the last section in particular:

https://www.gov.uk/hmrc-internal-man...anual/eim22030

so as long as grandad picks them up and takes them to his house (i.e. not OP's house) he's fine?

[TheCyclingProgrammer]

so as long as grandad picks them up and takes them to his house (i.e. not OP's house) he's fine?

I take the final paragraph to mean that all of the bulleted conditions must apply, so no, if Grandad is only providing care to their Grandson and nobody else, it wouldn't qualify.