Two Childminders Working From Same Address

[michaldr]

Hi

I am already registered and my friend would like to register as childminder with her own allowance of children but work from my house.

I am wondering how this works with tax issues? Obviously, she wouldnt be able to claim any allowance for utility bills, wear and tear etc.

Would I be able to charge her a kind of 'rent' every month to cover extra wear and tear to my house? I am thinking she would add me as an expense in her accounts and I would add her as an income?

I have spoken to tax office this morning and they have been no help whatsoever!

Grateful for any help

[sarah707]

Ah... I was going to suggest you speak to the tax office! :laughing:

Maybe ring them back and ask to speak to someone who understands the question :idea: :D

[Penny1959]

There are several ways to cover the tax side - with my daughter - who does not live at my address - we have formed a partnership - where by we share all income and all expenses - then divide the profit and pay tax on that. We set our own 5 of ownership which is used to devide the profit - therefore as it is my house and my resources - I 'own' a higher % than her. You can also use the % figure to represent the number of hours each puts into the business - so again I have a higher % as I work more hours.

If you ring you tax office they will be able to explain more - they also have some down loadable factsheets


Penny :)

[MrAnchovy]

You can either operate as a partnership as Penny says - more information is available from Business Link (http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073864308) - this is slightly more complicated to set up, but probably easier to operate and if you are operating as co-childminders you pretty much have to work this way.

But if Ofsted is happy for you to have separate registrations and operate independently from the same premises, with contracts with parents that only identify one of you as the childminder etc. then you could each operate as self-employed. Your friend could pay a fee to cover her share of heat and light etc. which she could deduct as expenses but you would have to declare as income. You would also need to put in place an agreement that she should pay 50% (or some other percentage) of the cost of replacing carpets, furniture etc and redecorating in your house: she can than claim the 10% wear and tear allowance against her income. Do it this way and the things she pays for in your house don't have to be declared as taxable income, if you did it as rent then you would have to pay tax on it.

[Toothfairy]

I don't know about the Tax side but I know of a CM who wanted to do this. Ofsted refused as between them they would have too many children per footage in the house.

[Hebs]

I don't know about the Tax side but I know of a CM who wanted to do this. Ofsted refused as between them they would have too many children per footage in the house.

i was told by ofsted when she came about my assistant that my friend could register in her own right but from my address

[beccas]

my sister works from myhouse does her own accounts and own tax return we save together for resources and take it in turns to put through our books at so we both claim the same total amount at the end of the year.

she also pays me a % for eclectri water etc.. and i puti tthrough my books as income from her.xx

it works well like this.xx

[michaldr]

Thanks everyone!