Bit of a One-Off

[nato]

Hi, new to the forum but have read some really useful info already having only been contracting for 4 months.

Just looking for thoughts atm as I have already done a bit of investigative work but the situation is a bit of a one-off situation so not a lot of info about.

I currently contract through my own limited company and plan in the near future to bring my wife on as a director anyway. However she is also in the process of setting up her own childminding practice which will also need some accounting work.
Due to these two income streams I have asked my accountant about handling both my company accounts and my wifes books to keep things in check. Her response was to suggest running the childminding through my company and then going the minimum salary and dividend route for both of us.

Sounds simple and I have already spoken to Ofsted who have no problem with my wife working as a childminder through a limited company but I have a feeling there is something I am missing. Any thoughts? *hides from NLUK*

[northernladuk]

I have a feeling there is something I am missing.

A bit of trust between you and your accountant?
Welcome to the forums

[nato]

Ha, Thanks NLUK.

I trust them. I would just like to make sure the i's and t's are sorted.

[stek]

Surely then the Mrs will have to charge VAT on her fees?

[pr1]

Surely then the Mrs will have to charge VAT on her fees?

theres no vat on child care - just need to create zero-rate-vat invoices

[nato]

Thanks guys for the comments.

Unfortunately pr1 is right, there is no VAT on childcare.

If my wife has her own public liability insurance does the company still need its own public liability to cover her?
I guess it would be like car insurance, as the car would be insured for business use so the company doesn't have to cover it...

[northernladuk]

Don't think I'd ever catch myself offering this as a serious suggestion but have you tried search the mumsnet and moneysaving expert forums. It's possible a child minder may have asked this and I would guess it's more likely to be there than here.

[TheCyclingProgrammer]

theres no vat on child care - just need to create zero-rate-vat invoices

OP better make sure they leave the flat rate scheme if they are on it then.

[nato]

I dunno NLUK you might have some good banter with the users on mumsnet. Quite opinionated.

Good suggestion though and I have done a good search for this topic but in general childminders don't want the costs of running a company so stick with sole trading.

Cycler- Could I not invoice without VAT for the childminding and stick to the flat rate for contracting? If I had to leave the flat rate it would void any financial benefits of having the two businesses together.

Thanks again for the comments.

[javadude]

Cycler- Could I not invoice without VAT for the childminding and stick to the flat rate for contracting? If I had to leave the flat rate it would void any financial benefits of having the two businesses together.

I thought that for the flat rate scheme you needed to name the category of business (eg IT consultancy), except in this case there would be two categories so how does that work?