separate bank account?

[luciawak]

Do you all have separate bank accounts for your childminding business and, if so, who do you use? Also, do you all pay yourself a percentage as a wage or do you not bother?

Thanks
Lucia
X

[susan]

No I just pay into my normal account as was told if you open seperate business account you would get charged for it. Dont pay myself a wage either it's all mine ...LOL well afetr NI and tax etc xxx

[angela234]

Hi Lucia I'm the same as Susan and just have my ordinary account i do sometimes put some of it into a savings account towards tax and equipment or any extras i want. Like i'm going to buy the children a little tikes kitchen next week. I do keep saying i'm going to keep myself a wage and save the rest but it doesn't happen also my wages are up and down, i'm more on a down at the moment.

Angela

[lorri]

Hi Susan! - how do you know how much to put aside for NI and tax?

NI you can pay weekly can't you, is it £2 or something?

But what about tax and also do you keep a certain amount of money aside each week to account for NCMA membership and other such things?

I have often wondered about this too. I would ideally want a separate bank account but obviously don't want to be charged.

Lorri x

[susan]

Hi

I phoned the inland reveune once I'd got registered and they sorted it out. Got a letter for NI contributions for 4.40 but it is voluntary as at the moment i dont earn eough to have to pay NI, waiting for tax office to get in touch as regards paying tax still but will not be much if anything as I'm not earning the figure before you start paying tax if that makes sense.

I have a saving account I can transfer monies into but as of yet haven't managed to save anything as my first monthly wage as such went into paying my overdraft off...lol

As for memberships etc I will probably put that aside, I buy toys and bits and bobs as I see them and save the receipts.

Does this help? probably not LOL


xxx

[lorri]

I guess you would have to earn a lot to have to actually pay tax and that's not really likely is it!

I think I will have money paid into my current account and then transfer it out into my savings account - is that okay? It's not illegal or anything not to have a proper business account is it?

Is that a stupid question?

I will divide the NCMA membership by 12 and make sure I put that much aside each month so that's accounted for. Is there any other yearly costs I should do that for too?

Lorri x

[lou]

i have all my money paid into my joint account i have with hubby.

you dont have to have a seperate account some do, some dont.

i dont bother, all our money goes in to one axccount and all our bills etc come out.

regarding tax, if you think you will be earning enough (over 5000 roughly) to pay it the i would strongly advise putting money aside each month for that or you wil be stung with a big bill!!!

keep all reciepts and put through everything!!!!!!!!!!

[susi513]

You can get a free business account with the Abbey, so I opened an account with them.

My brother's accountant advised him that he needs to put aside 18% but suggested if you round up to 20-25% you should have a bit left over to give yourself a bonus/emergency fund. (childminding has high expenses so a lower amount should suffice)

Every week I transfer 20% of what i earned that week into a different account to use to pay tax & NI. I do may myself a "wage" every week too - I transfer a percentage into a personal account but this amount varies, this week I paid myself 50%.

[susi513]

or PAY myself, even

[lorraine2767]

Its well worth saving some money each week or month incase you do have to pay tax etc, I have just had to pay my tax bill at the end of July luckly this year I saved some money, sometimes I just don't get round to it and when I think about it all the money has gone.

Lorraine xx

[mel]

I don't have a separate account but I won't be earning enough at the moment to pay NI or tax so am just keeping my records and keeping all my money !

Mel x

[stacie1985]

Hello I also am not expecting to pay tax and ni but i am putting 20 percent of anything i earn in to my other bank account coz i would rather be safe than sorry than that way if you dont have to pay it then you can book a holiday or sommit lol thats what im hoping. I dont have a busness account either coz it costs apparently when u put money in and take it out etc and i dont think as a childminder i would earn enough to justify doing that.

[susi513]

you do usually have to pay transaction fees in a business account so IMO not worth having. BUT if you open an account with the Abbey they don't charge.

Or you could do what my mum does (not a cm but owns a business) she has different personal accounts with the same bank - uses one for personal transactions and 1 for business. They've once suggested she opens a business account - she declined and they've not bothered her about it since.