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Forum Home  →  Discussion  →  Children and childcare  →  Thread

15 hours free childcare if parent does not work for UK company

JSmith
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Legal Advice Services, Working Families

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Total Posts: 12

Joined: 11 November 2020

Hi,
Does anyone know if a parent who works remotely in England, for a US company, is eligible for the 15 hours free childcare for a 3-4 year old child? All I can see in the regs (if I’m looking at the right regs) is that the parent must need the childcare to be able to work, must have a NINO (unless resident & in paid work in another EEA state), must expect to earn the relevant threshold and must not earn more than £100k annually (with the exception for critical workers for Covid). As it doesn’t specifically state anywhere (that I can find) that the work must be for a UK company, presumably if the client is working remotely for a US company, they are entitled to the free childcare if they meet the other conditions. Can anyone confirm if that’s correct please?

Charles
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Accountant, Haffner Hoff Ltd, Manchester

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I believe this is correct.

How are the wages being declared/taxes being paid to HMRC?

JSmith
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Legal Advice Services, Working Families

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Unfortunately I don’t have that information as I’m responding to a webform query. Do you think that would make a difference due to the requirement to have a NINO?

Charles
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Accountant, Haffner Hoff Ltd, Manchester

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No. I was asking because HMRC will want to see that the parent is earning enough.

Generally, someone working for an overseas employer will either be on a payroll set up by the overseas employer (if they have a place of business in the UK), or will have to run their own payroll scheme. Either way, HMRC will see the wages and the application for 30 hours childcare should go through without any issues.

If the above hasn’t been done, they will have to prove their earnings to HMRC some other way, and HMRC may well look into their PAYE responsibilities.

JSmith
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Legal Advice Services, Working Families

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Total Posts: 12

Joined: 11 November 2020

Thanks Charles, that is really helpful.

JSmith
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Legal Advice Services, Working Families

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Total Posts: 12

Joined: 11 November 2020

I’ve actually just looked at my query again and realised the whole thing is a moot point as the earnings requirement is for 30 hours free childcare not 15. People subject to NRPF aren’t eligible for the 30 hours so who they work for is irrelevant. I blame a very tired post Christmas brain but your response was actually still really helpful as I’ll know for future reference whether someone not subject to NRPF who is working for an overseas employer is entitled to the 30 hours. Thank goodness it’s my last day before the Christmas break or who knows what other irrelevant tangents I could set myself off on.