CONFUSED ABOUT INCOME

**Bex1** · 01-06-2009, 07:12 AM

Morning

Wonder if anyone can help please? I have a seperate account where parents pay monthly fees into but what part of this would be a wage? Would all be a wage? What about expenses though ie. national ins contr, paints etc?

Sorry if I sound dumb...I am when it comes to accounts and figures etc!

**sarah707** · 01-06-2009, 07:24 AM

Your wage is what you have left after expenses

**Bex1** · 01-06-2009, 07:29 AM

THANK YOU!

Oops sorry about caps there..DD is also trying to type

Expenses can be items such as paints, ni contributions, food etc is that right?so once I put through receipts say for month it comes to £50 (thats just off top of my head) the rest can be wage?

Sorry I have never worked for myself and therefore things like this baffle me. I went on a course and that baffled me too

**Winnie** · 01-06-2009, 07:39 AM

Some cm's 'pay' themselves a set amount in wages each month. I used to do this when i was earning enough, but not recently

If you want to set aside a certain amount each month then either draw it out or transfer to another account as wages and leave the rest. Your expenses (would come out of the amount left)are things like direct expenses-paints, nappy wipes, food and indirect are heating & lighting. NI & tax are not expenses and can not be claimed but you must remember to leave enough money for them ......clear as mud eh??

**Chatterbox Childcare** · 01-06-2009, 08:22 AM

Originally Posted by Bex1

Morning

Wonder if anyone can help please? I have a seperate account where parents pay monthly fees into but what part of this would be a wage? Would all be a wage? What about expenses though ie. national ins contr, paints etc?

Sorry if I sound dumb...I am when it comes to accounts and figures etc!

I know this gets confusing especially if you have previously been employed and used to getting wages.

You have income and expenses and take one from the other and this is your profit or loss and all this belongs to you.

i.e. £1000 income £400 expenses leaves £600 profit which is yours - you do not get wages. Your tax and NI do not come out of expenses, they are paid by you from your profit.

The IR will be looking at the bottom line of your paperwork and not your bank account but if you are investigated that will want to see this too to make sure that you have put everything in your paperwork correctly.

Hope that makes sense.