Finance when running your business

Operating a childcare business means that you will need to keep the appropriate financial records for tax and accounting purposes. The best source of information on this comes from HM Revenue and Customs (HMRC) who can advise you appropriately. This page outlines 

Types of Business 

The government has produced guidance on setting up organisations, which you can use as a reminder for the responsibilities you have in operating a childcare organisation:

Choosing an accountant or bookkeeper

Accountants can help with a wide range of tasks that some business owners may find difficult, for example, PAYE, VAT, personal tax, business tax, year-end accounts, and returns tasks. Finding a good accountant could save your business a lot of time, effort and money.

Look at our useful links page on some online directories to search for accountants and bookeepers in your area. 

Business rates 

General information about London Borough of Waltham Forest's business rates.

Business rates - where churches and chapel halls are used as day nurseries or pre-schools

Church and Chapel Halls used as children's day nurseries and let on hiring agreements/licences will not normally form a separate rateable occupation of a church or chapel hall providing the church organisation's interference and control over the hall is such that the church organisation at "the end of the day" remain in paramount occupation - see s.67(5) LGFA 1988 and Section 6.6 of the Rating Manual - Volume 4 - Section 8 - Part B : Churches, Church and Chapel Halls and Similar Buildings.

In the case of church/chapel halls used by children's day nurseries exemption is very much dependent upon the evidence of church's interference with and control over that occupation. Day nurseries will normally operate for a limited number of hours and in between the hall will revert back to a use qualifying for exemption.

In the majority of cases, therefore at the end of the day providing the church organisation has retained occupation by virtue of its control and use the church should still be regarded as the rateable occupier.

It is considered that the correct approach to rateability is as follows:

  • If the children's nursery takes place within a church hall but does not undermine the character of the building as a church hall, because the building is still used for other purposes, then the building retains exemption as a church hall. Use as a nursery per se is not inconsistent with a building being a church hall as the very essence of a church hall is that it is a building which is used for a variety of purposes and a children's nursery can be one such purpose.
  • However, if the reality is that a discrete area of the building has been physically set aside for use as a nursery and that part of the building is designated for use as a nursery rather than being available for a range of uses associated with a church hall then exemption will only be available "to the extent that" the building physically remains a church hall (ie the part which is available for a variety of uses) whereas the part which has been designated as a nursery would be rateable.

It is recommended that the facts are established at the earliest opportunity by obtaining copies of any licence or letting agreement and ascertaining the church's control and retained powers in relation to the area used by the day nursery.

Managing Cash Flow 

The legal team behind the Law-call service, available to Alliance members, explains how you can deal with unpaid fees.

Last update: Tuesday 5th of May 2020 11:45:17 AM