View Full Version : Do you pay rourself a wage?

Lick'le Oakes
17-04-2009, 10:01 AM
Hi can anyone tell me if they pay themselves a wage and how this works. I have a seperate bank account for all childminding ins and outs, put then my husband wants me to put a wage into the household account every month. Is this right and if so is this classed as profit when you do your tax returns. Also if i can claim percentage of water, electricity etc do i put that into the childminding account or just write it in paper. Hope this makes sense.

17-04-2009, 10:13 AM
your wage is is your fees

your deductions are taken into account

the remainder is yours as a remaining wage

some cm's put money aside to cover tax payments, I didnt this year as knew i would be under but last year I put £50 a month by so it was there ready to pay the taxman, I did have a little left over which was a nice bonus at the end of the tax year.

NOW I do things this way.

I have one joint account with my Hubby no sperate account for CM so cheques and vouchers go into the joint account to help with the bills.

I also get paid by cash, out of this I keep £40.00 a week this covers toddler groups parking fees and anything extra gets carried over so when I have tallied up extra I can go spending on craft etc. The rest of my earnings are given to my Hubby for shopping, take outs and my own childrens swimming lessons.

This may seem backwards as in reality I'm not keeping my earnings but he is better with money than i am. when I need extras for clothes or shoes he gives it me back.

How you use your earnings is up to you, this way works best for my family and me and though at times it feels I'm working hard for £40.00 a wk i have no other expencies to pay out.

Chatterbox Childcare
17-04-2009, 10:35 AM
All your income is your wages.

All my money goes into my personal account (no business account) and then the expenses come off leaving the profit.

Hope that makes sense.

17-04-2009, 10:36 AM
I put all my cheques into my own current account, all the voucher payments are paid into the account as well This is my income but not my disposable income!!!!

I pay into an ISA each month to save the money to pay my tax bill just to make sure I have it, I was caught out badly one year and vowed never to let it happen again!

My cm income is the only money paid into this account although it is not a business account, it is just the current account I have had for years.

That means that once the ISA money has gone and the direct debits for the car loan, phone/broardband/NI contributions/TV licence/ NCMA fees/car tax and insurance/ any cm expenses on equipment and toys, outtings, toddler groups and petrol.

What I have left is what I have to spend! Most of it pays for my teens music lessons, school trips, scout subs and camps, clothes, phones, cinema trips etc etc!!!!:eek: I should say after that lot!! that is what I have left to spend!!!!!!!!:thumbsup:

17-04-2009, 11:10 AM
thats how i do it! keep 40 in purse for bits and bobs, rest goes in our joint account. Anything i need for me, shoes, clothes, i just transfer back to my own account

This way all bills get paid ( my partner is far better with money than me :blush: ) and theres never any outstanding bills. And we generally money saved

17-04-2009, 12:06 PM
All your income is your wages.

All my money goes into my personal account (no business account) and then the expenses come off leaving the profit.

Hope that makes sense.

This is what i do too although after personal bills etc there's never any profit.

Lick'le Oakes
17-04-2009, 04:06 PM
Thank you everyone for your help and replies

17-04-2009, 04:30 PM
I am sure it is probably technically possible to set yourself up as a company and pay yourself a wage, though I cannot see why you would want to. You would have to pay yourself at least the minimum wage then make deductions from your full time income for tax and national insurance (also your company would have to pay employers national insurance contributions). How you would figure in the expenses into the company accounts and all that I don't know. In essense I would say more trouble than it's worth.