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bigduckontax, Accountant
Category: Tax
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My wife runs a nursery school should she pay tax on the income

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My wife runs a nursery school should she pay tax on the income from the free plases scheme?

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.

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.
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