Definition of childminder

Definition of childminder

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I have a client whose childcare business has grown to a substantial 6-digit turnover. It takes place within her home albeit a separate secure area. Her previous accountant claimed the flat rate allowances applicable to childminders including 10% of turnover for wear and tear. However, given that the nature of the business is now more of a nursery and that figure is so much higher than could genuinely be justifiable I am wondering how to go with this. I don't want to negligently underclaim expenses for the client or land them with an enquiry for an overclaim but I can find no definition or limits in respect of a childminder on HMRC website.

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By Steve Kesby
09th Apr 2014 10:00

Do you mean...

... that you haven't found BIM52751? If it takes place within her own home, I think it's childminding as far as Ofsted are concerned, and they will limit the number of children she can have at any one time in certain agre groups.

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Replying to Tax Dragon:
By gerrysims
09th Apr 2014 11:07

found that Steve

sorry Steve, I have seen that. It talks about a childminder without ever defining what one is i.e. the difference between a childminder and a small nursery. In my view this is a small nursery but is the only definition what OFSTED says ? They are registered as 'childcare on domestic premises' with OFSTED but then they were too in the previous year when the previous accountant claimed the 10% W&T allowance.

My concern is that I don't want to be too hasty in ruling out a 5-figure W&T claim when it has been made in the prior year but the more I think about it the more I conclude I am correct that it isn't allowable as she isn't really a childminder.

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By thehaggis
10th Apr 2014 00:06

Definition

"Childminders work in their own homes and are paid by parents for looking after their children".  Are you looking for a difference where none really exists?

A nursery is a place for very young children to go to, whereas childminding can cover all ages to include after school care.

Nurseries get more frequent Ofsted inpsections

http://www.rbkc.gov.uk/pdf/Different%20types%20of%20Childcare.pdf

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By mhtax
10th Apr 2014 05:28

Ofsted is the defining body

The definition used by Ofsted depends on the number of people providing the care.

Four or more people, at the same time, providing care move up to the next level of Providing Childcare in Domestic Premises.

If there is never more than 3 childcarers at once then it is Childminding.

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Stepurhan
By stepurhan
10th Apr 2014 09:37

Separate secure area

It sounds like she isn't offering the care in her own home as such. Yes, it is part of the same building, but a part specifically set aside to look after children. That at least makes the 10% wear and tear, which is related to her normal home furnishings, a bit suspect. Her normal home furnishings are not in the part of the house used.

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By gerrysims
10th Apr 2014 10:24

thanks everyone

I've reviewed the replies and spoken to the client and she is also convinced now that a claim isn't appropriate and certainly not justifiable in terms of reflecting actual costs.

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