Hello all,
I'm starting my own childminding business, I've had my Ofsted registration certificate and I'm all ready to do. I'm about to register as self employed with HMRC however as myself and my husband are going to childminders together the process is really confusing and I can't seem to find a straight answer.
Do I need to register the business as a partnership with HMRC or should we both just be registering as individually self employed in our own right but just working for the same business?
We will be splitting everything down the middle 50/50 in terms of profit etc. I have a spreadsheet I've put together which tracks all the income, hours works, how much has come in from each child's parents, it also allows me to input any receipts or business expenses, tracks mileage and calculates the energy, council tax and wear and tear allowance for me and gives me a final figure. My original thought was for us to register individually, track everything on my account spreadsheet and then when it comes to us each completing our self assessment just divide the final costs (turn over, profit etc) by 2 and then each of us just enter those figures.
Does anyone know if that is an acceptable way to complete the tax returns? As this will have the total costs of everything received and purchased by the business, have the benefits calculated in and then just each of us claim 50% of everything. We will then pay our own individual NI and tax.
Or do we have to register as a partnership and then put one set of accounts through, pay one lot of tax on the total amount earned and we just split what is left (the profits) between us.
I've looked around for an answer but I've struggled to find anyone in the exact situation as myself.
Thank you all in advance for any advice
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