Pricing with no receipt

[playfelt]

Atos if you want to ask your friend to look after your children and she agrees to do the favour for you what arrangements you make between you both as to the money that will change hands or the services you will do for her I think are fine. The caution I would give is that often the "illegal" home daycare situations started out just like this - a lady caring for the kids of a neighbour and than another one asked and she felt guilty saying no so took them too and eventually was way over the legal limits. She still didn't consider herself a daycare provider BUT the law does. You still haven't said what the ages are of your children or your friend's children but there are legal laws in the province that they can enforce in terms of fines and penalties. The government isn't as concerned about what one family does with their own children but again if any other child from a second family either a neighbour, friend of one of your neighbour's kids is in the home to play then the neighbour would be subject to the same ratios and fines of a daycare provider. This includes friends over after school, etc. As tempting as it is come tax time you are going to wish you had gotten receipts from the neighbour. And your neighbour is going to wish they had been kept all of their expense lists because it benefits both of you. For you there is nothing you would need to do just pay your friend as agreed to. It is your neighbour that would need to read up on what she can and can not claim against what you are paying her. That means once tax time comes you have a deduction from your taxes and the amount your friend can claim will be about half of what you are paying her and will likely leave her untaxed anyways but also as some mentioned able to contribute to Canada pension as a working person to be claimed when she retires.

[Atos]

So my kids ages would be 1.5years old for full days, a 5 and 7 year old for before and after school care. The friend of ours has a 2 year old that stays home, a 5 year old and 8 year old. So it would be 6 kids total but seeing that her eldest is above 6, I believe we are under the new limits, correct? Going by the typical rate of 40/day and 20/day(before and after), I think I would willing to pay 35/day and 15/day without receipt. Putting aside all the fraud, illegal. blah blah blah....Not sure if at tax time would benefit me more to pay regular rate with receipt or lower rate without receipt.