What do you pay yourself?

[Willowdancer]

Can you legitimately not pay yourself anything?

I know I have to register as self-employed with HMRC, but because I will also still be working for our own business (and my salary from that gives us enough to run on) I was wondering if I could get away with not paying myself anything from my minding fees and just using those to build up the business for a while.

Does that make sense, and if so can I do it??

[Spangles]

I don't actually 'pay' myself anything as such.

I use the money I'm paid to buy new things for the business, pay for Ofsted, NCMA, petrol, ink, paper, etc and whatever is left is plonked in our savings. I don't give myself a wage and don't account for the money I make (which isn't much! Ha ha!)

[tulip0803]

When I minded before and from what I understand it is still the same. Childminders normally "earn" whatever profit is left over after expenses are taken away from the gross income from childminding.

Gross income - expenses = earnings

You can re-invest as much as you want into the business as long as you can justify it to the tax man.

I am ot sure about paying yourself a salary.

[Gherkin]

I do not account for my own wages just for my expenditure relating to work. I pay for mindees food out of our joint account which then helps me balance with what I pay my bills with - if this makes any sense then good if not it is because I am half way through a bottle of white wine!:blush:

[sarah707]

Whatever is left over is my wage... the bit in the bank when the bills have been paid :D

[Chatterbox Childcare]

Its all mine mine mine - until all the expenses get paid that it!!

You just have to declare what is left over, unless you are a registered company and that is a different kettle of fish all together

Debbie