I have a client whose childcare business has grown to a substantial 6-digit turnover. It takes place within her home albeit a separate secure area. Her previous accountant claimed the flat rate allowances applicable to childminders including 10% of turnover for wear and tear. However, given that the nature of the business is now more of a nursery and that figure is so much higher than could genuinely be justifiable I am wondering how to go with this. I don't want to negligently underclaim expenses for the client or land them with an enquiry for an overclaim but I can find no definition or limits in respect of a childminder on HMRC website.
Replies (6)
Please login or register to join the discussion.
Do you mean...
... that you haven't found BIM52751? If it takes place within her own home, I think it's childminding as far as Ofsted are concerned, and they will limit the number of children she can have at any one time in certain agre groups.
Definition
"Childminders work in their own homes and are paid by parents for looking after their children". Are you looking for a difference where none really exists?
A nursery is a place for very young children to go to, whereas childminding can cover all ages to include after school care.
Nurseries get more frequent Ofsted inpsections
http://www.rbkc.gov.uk/pdf/Different%20types%20of%20Childcare.pdf
Ofsted is the defining body
The definition used by Ofsted depends on the number of people providing the care.
Four or more people, at the same time, providing care move up to the next level of Providing Childcare in Domestic Premises.
If there is never more than 3 childcarers at once then it is Childminding.
Separate secure area
It sounds like she isn't offering the care in her own home as such. Yes, it is part of the same building, but a part specifically set aside to look after children. That at least makes the 10% wear and tear, which is related to her normal home furnishings, a bit suspect. Her normal home furnishings are not in the part of the house used.