Some advice please - registering as a limited company...?

**EmmaReed84** · 21-08-2013, 04:06 PM

I am now getting quite serious in to looking at taking on an assistant/apprentice. I have spoke with DH about this before and I said that if I was to take on staff he would want me to become a limited company.

First of all, is that even possible if I am just a childminder with an assistant/apprentice.

The thing DH is petrified that any debts I incur through the business will affect our own personal finance. (Such as having to pay wages etc) Not quite sure what other "debt" I would get in to?

So, can this be done? Do you think it is wise to do so, so if CM did down the toilet my own personal credit would be affected in anyway.7

DH has stressed, very strongly that if I did not register and things went wrong and it affected him, he would leave me! That is how scared he is. He once had a panic attack when he owed £1,000 on a credit card when he was 18! His Granddad paid it off and he paid his Granddad back in 3 months! DH is terrified of debt... And he wants to get a mortgage one day LOL!!

**Mouse** · 21-08-2013, 04:15 PM

There have been a few threads about this:

http://www.childmindinghelp.co.uk/fo...d-company.html

http://www.childmindinghelp.co.uk/fo...d-company.html

http://www.childmindinghelp.co.uk/fo...d-company.html

I don't know what's happened to Mr Anchovy. I haven't seen him post in a long time. I know Debbie has looked into it, so hopefully she'll give you some more info.

**bindy** · 21-08-2013, 04:52 PM

Originally Posted by EmmaReed84

I am now getting quite serious in to looking at taking on an assistant/apprentice. I have spoke with DH about this before and I said that if I was to take on staff he would want me to become a limited company.

First of all, is that even possible if I am just a childminder with an assistant/apprentice.

The thing DH is petrified that any debts I incur through the business will affect our own personal finance. (Such as having to pay wages etc) Not quite sure what other "debt" I would get in to?

So, can this be done? Do you think it is wise to do so, so if CM did down the toilet my own personal credit would be affected in anyway.7

DH has stressed, very strongly that if I did not register and things went wrong and it affected him, he would leave me! That is how scared he is. He once had a panic attack when he owed £1,000 on a credit card when he was 18! His Granddad paid it off and he paid his Granddad back in 3 months! DH is terrified of debt... And he wants to get a mortgage one day LOL!!

I agree with you, I don't understand what debt you would get into. Why don't you get your assistant to become self employed. She/he would be responsible for her own tax and N.I and stand her own holidays . Do short contracts, say for 2 or 3 months at a time. if work dries up no need to renew the contract. Its a big thing I know, I have an assistant and its been great, taking on another after Xmas. Do your home work, make sure there is plenty of work to warrant paying for help. Good Luck hope it works out for you.

**leeanne910** · 21-08-2013, 05:16 PM

My assistant has a contract which is reviewed 4 weekly. So if i had to drop hours we review it in contract and she has enough notice if she doesnt agree....but as it stands at min i have a minimum of 17.5 houra for her.

Its working for us im self employed and shes my assistant never felt the need for a ltd company

**hectors house** · 21-08-2013, 05:24 PM

I can't really see that you would get into too much debt unless the work dried up or you had a complaint made against you and your registration was suspended and you still had your assistants wages to pay.

However it may be worth looking at the links above or contacting inland revenue to see if it would be benefical for tax purposes - it really annoys me that work I do on my home for the sole purpose of childminding ie: building a permanent shelter in the garden or converting garage into playroom can't be deducted against tax because it is seen as home improvements! I would take down a shelter in garden immediately as probably would de-value price of house especially if hubby builts it!

**Chatterbox Childcare** · 21-08-2013, 06:00 PM

You have to look at what you would gain by becoming a LC?

There are more accountants fees to pay, additional forms to lodge at companies house each year and I think unless you are planning on becoming a major player in childcare it will cost you more than it will safe.

Ask DH to look into it for you and he will see - much easier than you doing all the donkey work lol

Alternatively you could put an amount away not to be touched to cover 3 months wages for an assistant if things were to go wrong but realistically how large can this amount be?

**sarah707** · 22-08-2013, 06:16 AM

I don't know any childminders who are a limited company. I haven't a clue what you would gain from it??

I suggest you and your hubs get an appointment and talk to a solicitor / legal advisor and go through all the ins and outs of it.

Hth

**Chatterbox Childcare** · 22-08-2013, 07:58 AM

I am still looking into this because there are two of us but at the minute if we lose the 10% wear and tear it far outways the benefits and it has taken me 1.5 years and no closer

**EmmaReed84** · 22-08-2013, 12:17 PM

Originally Posted by sarah707

I don't know any childminders who are a limited company. I haven't a clue what you would gain from it??

I suggest you and your hubs get an appointment and talk to a solicitor / legal advisor and go through all the ins and outs of it.

Hth

Well I have decided not to go ahead with registering as a ltd co. DH really didn't understand how it all works. I explained what Mr A advised on the other threads, also what has been said on here. His reply was "To be honest, Em, I don't know about your industry, all I know is I don't want it to affect our credit. I don't bailiffs at the door trying to take our stuff because it has all gone wrong!"

I think it is the not knowing how our industry works and he feels like he is trying to find his way in the dark. Which I understand completely. He is looking to get in to contracting (He works in IT, wants to be a self-employed consultant). He is looking at his industry though and when he decides to take on staff, his business will need to be a ltd one, but I don't think he can get his head round that I won't have the overheads and creditors that he will/might have.

If I decide to take it to the next step and look in to a nursery then that will be different.

**toppo6** · 22-08-2013, 12:40 PM

Originally Posted by EmmaReed84

I am now getting quite serious in to looking at taking on an assistant/apprentice. I have spoke with DH about this before and I said that if I was to take on staff he would want me to become a limited company.

First of all, is that even possible if I am just a childminder with an assistant/apprentice.

The thing DH is petrified that any debts I incur through the business will affect our own personal finance. (Such as having to pay wages etc) Not quite sure what other "debt" I would get in to?

So, can this be done? Do you think it is wise to do so, so if CM did down the toilet my own personal credit would be affected in anyway.7

DH has stressed, very strongly that if I did not register and things went wrong and it affected him, he would leave me! That is how scared he is. He once had a panic attack when he owed £1,000 on a credit card when he was 18! His Granddad paid it off and he paid his Granddad back in 3 months! DH is terrified of debt... And he wants to get a mortgage one day LOL!!

You do not need to at all. I have an assistance and I have registered her with ofsted ey2 form and first aid and have an acountant to help me with her tax and national insurance. You should have a seperate account from your personal. I have a business card which I only use for childminding and I pay my self monthly knowing how much and make sure you have plenty left over for food, resources and outing. As your ofsted registered we do not need to pay VAT. Make sure you have insurance in house and for staff and a good ole solid contract and all be good. Good luck

**EmmaReed84** · 22-08-2013, 03:32 PM

toppo6, I do already have a separate account that all my CM money goes in to. I then pay myself at the end of the month a set wage and leave what is left over in the "business account" although I don't actually pay for a business account.

I use what is left over for tax, NI, PACY, Ofsted. Resources and such like I just buy anyway and keep the receipts. DH is not worried about how I run my business, in fact he is quite impressed and asked for my help when he comes to set his business up. But he is just worried about me taking on staff and then losing children/money but still having to pay an assistant.

I like the idea of a 4 weekly review of the contract and also might look into a rolling contract.