Joint Childminders

[LittleRabbits]

Hey guys, just need a little advice please....

I am in process registering as a childminder with a friend who will be working together with.

What would be the best way to pay each of us and work out our tax end of year?

Either each month split what we earn between us.

Orrrr do we use a PAYE system and work out a daily rate of what we earn? (which I don't really understand how that works anyway)

Do we do our own tax return? But not sure how that works with who claims what for expenses etc... or can we do one tax return for the business?

[Chatterbox Childcare]

I work with my DH and we registered as a partnership. You can take any amounts you want but they go down as drawings and not PAYE unelss you form a company. Keep your income and take off the expenses and then you split the profit on your partnership return form. You need to come to an agreement BEFORE you start and decide who has what, this may be higher for the person whose house you are minding from for their expenses.

[LittleRabbits]

Thanks for advice. Who did you register partnership with? What do you mean by drawings?

[LittleRabbits]

Did you do just the one tax return to cover both of you or do you both have to complete a tax return and both be registered as self employed?

[k1rstie]

I think you need to be very careful before you start. Simona is very lucky that she is married and lives with her business partner. So it's a ' whats yours is mine!' Kind of business ( not wanting to make presumptions Simons).

Minding with a friend at one of the houses is a very different kettle of fish. It needs to be discussed before you start. There have been loads of threads on here discussing it, including nightmare stories when it all goes wrong.

Off the top of my head, you would need to consider;
Who will pay the bills - gas, electricity, council tax etc.
Wear and tear on your house
Sickness by either of you,
Are you both going to have the same holiday dates? Or different
Will one minder have their own EY child present, and how would that affect joint earnings
I'm a slob, your a neat freak - how would that work?
Different attitudes to behaviour management etc.
What would happen if you fell out?


Lots to consider when working with a friend.

[LittleRabbits]

I know, we have thought through pretty much everything. I am living there as well as big house and we have got separate rooms for childminding. I pay rent, we wud pay money towards her parents to cover the extra bills but we will be seeing a solicitor just to cover us if anything did happen

[LittleRabbits]

We have an assistant who will cover sickness and holidays and neither of us have children

[Chatterbox Childcare]

You register online with the HMRC and they will ask you to complete a tax return by the end of July - this shows who has what profit.

Drawings are what you take out of the business - remember you are the business as you are self employed and this doesn't go in your return. so if your profit was £40000 and you were splitting it 60/40 it would show £24000 for one person and £16000 for the other. These are the figures that you would put in your individual tax return.