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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4074
Experience:  FCCA FCMA CGMA ACIS
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My wife runs a nursery school should she pay tax on the income

Customer Question

My wife runs a nursery school should she pay tax on the income from the free plases scheme?
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.

Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.

I am the opinion that the moneys received from free places schemes forms part of the income of the nursery and is taxable in the usual manner. Various businesses are already complaining that the recent increase in hours for these children is squeezing income from more affluent parents and hence the nursery income.

I am so sorry to have to rain on your wife's parade.

Customer: replied 2 years ago.

Thanks, ***** ***** to be a gray area as some councils say you don't pay tax on it some say you do. My wife gets £3.00 per hour per child if she pays tax on that it does not leave enough.

Expert:  bigduckontax replied 2 years ago.
Please remember that the councils are not responsible for Income Tax and should not be giving advice. Perhaps the lack of income is why so many nurseries are refusing to take or restricting the numbers of children under the free places scheme.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you for your support.