Seperate Bank Account?

[SarahJellybean]

I just wondered if it was worthwhile getting a separate bank account before I start, to pay all fees into and then withdraw from that to buy food etc. Or do you all do this anyway?

[EmmaReed84]

I have 4 accounts.

Money In - all my wages, tax credits, child benefits go in to this main account then I transfer what I need to my other accounts. (extra money stays in this account incase I need it at the end of the month if I havent used it, it goes into my savings account)

Billing - All my direct debits and regular payments come out of this account I transer £x amount to the account and just leave it so I know my bills get paid

Wages - I transfer £x amount to this account for my spends, this is my money to do what I want with whether it is buy clothes, go out, little treats

Savings - I transfer money in here to cover things like tax, emergencies and also regular savings I also have enough to cover me to be out of work for 6 months.

[Suebb1]

I've never had a seperate bank account for childminding, however having done accountancy in the past I keep very strict accounting books x

[Chatterbox Childcare]

I have 2 accounts mainly because it is easier for my finances.

All my money goes into one account and I transfer what I need each month (usually all of it lol) into my budget account which is where all my DD go from

I buy everything on credit card so I have a paper trail if I need it

[lorettacritchet]

Don't understand what do you mean wages????


I have 4 accounts.

Money In - all my wages, tax credits, child benefits go in to this main account then I transfer what I need to my other accounts. (extra money stays in this account incase I need it at the end of the month if I havent used it, it goes into my savings account)

Billing - All my direct debits and regular payments come out of this account I transer £x amount to the account and just leave it so I know my bills get paid

Wages - I transfer £x amount to this account for my spends, this is my money to do what I want with whether it is buy clothes, go out, little treats
Savings - I transfer money in here to cover things like tax, emergencies and also regular savings I also have enough to cover me to be out of work for 6 months.

[EmmaReed84]

Don't understand what do you mean wages????

On my online account I can name my accounts so I just named it "wages" but basically it is money for me to live off for the rest of the month petrol, things I want/need... it is money I can spend guilt free. I break it down mentally in my head so I have a weekly allowance... it is not actually "wages" as such IYSWIM

[lorettacritchet]

Ahh u see i was enquiring about this last night as a childminder friend does this too but she puts it down into her expenses.....still v confused though :blush:



On my online account I can name my accounts so I just named it "wages" but basically it is money for me to live off for the rest of the month petrol, things I want/need... it is money I can spend guilt free. I break it down mentally in my head so I have a weekly allowance... it is not actually "wages" as such IYSWIM

[EmmaReed84]

Ahh u see i was enquiring about this last night as a childminder friend does this too but she puts it down into her expenses.....still v confused though :blush:

I saw your post yesterday and did comment. I think if you have any issues perhap PM Mr A.
x

[MrAnchovy]

Please don't PM me. I give my time freely to post on this board on the basis that anyone can see and benefit from the information that I give :D

Any payment made from your childminding income to a personal account (or cash taken out of the business) is not an allowable expense for tax purposes. In accounting terms such payments are called 'drawings' rather than wages.

It is perfectly OK to manage your money in this way though - actually as long as you are making sure you keep enough set aside for tax I would recommend it! Just ignore any transfers into the 'wages' account in the records you keep for tax purposes.

[rickysmiths]

Ahh u see i was enquiring about this last night as a childminder friend does this too but she puts it down into her expenses.....still v confused though :blush:

Talk to the accountant about it she will explain everything to you.

[lorettacritchet]

hi, well unfortunately she wants to charge me more than the other one and its hard to get in touch with jane! I am still dithering what to do.



Talk to the accountant about it she will explain everything to you.

[lorettacritchet]

so really we are saying you still have to pay the same amount of tax? and you make no notes on the expenses book?
i only have one account and use personal and business from that....so wouldn't need to transfer anything. after expenses i have less than £600 left and thats all on my personal bills.



Please don't PM me. I give my time freely to post on this board on the basis that anyone can see and benefit from the information that I give :D

Any payment made from your childminding income to a personal account (or cash taken out of the business) is not an allowable expense for tax purposes. In accounting terms such payments are called 'drawings' rather than wages.

It is perfectly OK to manage your money in this way though - actually as long as you are making sure you keep enough set aside for tax I would recommend it! Just ignore any transfers into the 'wages' account in the records you keep for tax purposes.

[EmmaReed84]

Please don't PM me. I give my time freely to post on this board on the basis that anyone can see and benefit from the information that I give :D


Sorry :blush: My bad!