CMS - Do I employ DH or should he also be SE????

[looneytune]

I can't decide the best way to do this. Dh is my assistant and at some point (soon I hope) will be a registered childminder himself. We're only taking on 2 extra children (well, equivilent of 2 extra but lots of part timers).

I know I could employ him and pay him minimum wage but not sure of all the ins and outs. I know he could also become Self Employed (but not sure if this could only happen once he's registered?) but how does it works with the income/expenses? Could we just split it all down the middle or is it not as simple as that?

Any advice you lovely lot can give would be much appreciated

Thanks

I childmind with a very close friend of mine...we are both fully registered and when we registered with the tax office they reccommended we set up as a partnership.

we find that it works very well, and we split all costs and income 50/50.

We have a 'work' bank account in both names and all the childrens fees get paid into there, and all expenses come out of there. We save money towards tax in there and all monthly profit after that is then split 50/50 for our wages!

Not sure how others are set up that work together but we only know this way, and find it very straight forward.

Hope this helps, but if you want to know anything, just ask.

Oh, that's very interesting, that would be perfect I'll try and get a bit of info online. Thanks for that!

DH and I have both registered self employed, but I need to chat with Mr Tax Man about whether we have done the right thing and whether we should be 2 separate people, or a partnership. Also I need to ask about what extra expenses (ie wear and tear) we can claim with double the children. I will let you know what they say when I eventually make 'the call'.

umm 10% of turnover will still be 10% of turnover irrespective of how much you earn - won't it?

Katmac beat me to it. Wear and tear is a % of income therefore shouldn't make any difference. As for bills etc, I wouldn't have thought that would make any difference either but maybe I'm missing something?

Sorry ... but the other things, like heat and light. If it's 10% for me working 40 hours, should we claim 20% if we are using more or 20% council tax if we are using twice as much house space, etc. Picked a bad example (all on the same spreadsheet). Some things will be twice as much and some will not ......

Not because you don't heat the space twice as much - in fact you will probably use less heating (as bodies generate heat)

Council tax is per dwelling as someone could use 3 rooms & get 10% and someone else use their whole house & still get 0%

HSMM - might be different for you if you've only claimed part of your house in the past but for me, I've always claimed the % of my whole heating bill as my whole house is used for childminding therefore MY extra numbers won't change this.