reach_anna
10-31-2014, 02:54 AM
im planning on opening an unlicenced home day care for january.
aside from the fun stuff like acquiring toys and whatnot, ive been doing lots of research and preparing paperwork - contracts, flyers, etc.
im a ER RN by trade... and i wont lie, give me a human body and im in my element. give me things like taxes and write offs and im so confused.
i have a few questions...
as an unlicenced HDC without a registered business, can I still write off purchases made for the HDC?
when providing receipts, do i charge my families tax?
ive read on this board that 20% should be safe to save aside for the theiving government? now if i dont want to pay into EI is that an option?
can i ask, what everyone is charging for full day care for children preschool aged?
when preparing to interview a potential family - other than a contract, resume, police check and references, as well as a childs info sheet (any special needs, diet, contact info, health card number, etc) should i provide any other type of paperwork?
is it necessary to have a fire inspection?
if you can as unlicenced, non registered HDC, write things off.... how do you determine what amount to write off. for example, would i have to record the price of gas that day that i filled up and then calculate kms to and from my destinations then record that as HDC related? what about internet (we are a cable free home, so can internet be substitued for cable?)
ill leave the questions at this for now. i really appreciate any info i can get :)
thanks ladies :)
Rachael
10-31-2014, 07:33 AM
as an unlicenced HDC without a registered business, can I still write off purchases made for the HDC?
Yes - HDC is one of only two job codes in Canada which do not require a business to be registered. As long as you can prove the expense with a receipt and as long as it's an eligible expense, you can claim it.
when providing receipts, do i charge my families tax?
No. You receipt must give your name, address and your SIN number though. If you don't want to provide your SIN, then you must register your business and provide the reg number.
ive read on this board that 20% should be safe to save aside for the theiving government? now if i dont want to pay into EI is that an option?
You don't have to pay EI unless you want to, and wanting to, requires opting in to the program and no ability to claim for one full year after opting in. You should still budget for around 20% taxes. Without knowing your personal situation, it's impossible to guess a more accurate amount.
I will say that the EI rates are very reasonable but provide limited coverage so if you do decide to opt in at a later date, make sure you know what you are getting.
There is mat leave coverage and caring for a terminally ill dependant but they is NOT a payment just because you have no clients (and therefore no income) for a given period of time.
can i ask, what everyone is charging for full day care for children preschool aged?
As self-employed people, our policies all vary but generally speaking, we charge a full day rate for children who are present for a full day. If you mean in your area a preschool program is part-day, then I imagine most people would pay a half-day rate. Of course, it's up to you whether you are offering this service.
Rates vary based on a number of factors just like they do in any service industry. Experienced carers can charge a bit more than someone new whose never cared for more than their own children before. ECE or those with a child development related further education can charge more. Established carers with a proven history of reliability can likely charge more - but that MORE will only be a few bucks at most.
Primarily, our location sets our rates and if we over-price, we will be empty. If we underprice we will be full but often with clients who don't value our contribution and who are looking for cheap care vs good quality care.
Prices are mainly set by the demand in the area and the number of providers. If there are 30 carer's within walking distance/bus route of a school, then that will affect price as there is a need to be competitive.
when preparing to interview a potential family - other than a contract, resume, police check and references, as well as a childs info sheet (any special needs, diet, contact info, health card number, etc) should i provide any other type of paperwork?
I also provide a copy of my insurance certificate although I do black-out the rates I pay. I don't provide reference at this stage - I don't know if I want them and they don't know if they want me until after interview. I will provide general Letters of Recommendation but I protect my references from having to deal with high volume contacts.
is it necessary to have a fire inspection?
That will depend on your Province's requirements. Each province has it's own day care regulations. Find yours and get familiar with them. Some rules only apply to licensed, registered, approved day homes but their are rules which apply to all - i.e. max number of children permitted. And be aware, in most provinces, you cannot increase that number by having an assistant.
if you can as unlicenced, non registered HDC, write things off.... how do you determine what amount to write off. for example, would i have to record the price of gas that day that i filled up and then calculate kms to and from my destinations then record that as HDC related?
You have to keep ALL you gas receipts for the year and log each and every trip you make for the day care. Make a note of your KMS at the start and end of each year (or in your case, the day your business opened and the end of the year). You will need this anyway for your tax return.
Then total DC kms is divided by total KMS your care travelled in a year to calculate what percentage of your kms were for business. That same percentage is then applied to your total gas receipts.
i.e. Suppose my kms was 1000 at the beginning of the year and 3000 at the end. That means I travelled 2000 kms during the year. If my day care trips were for 200 kms then 200kms/2000x100 = 10% of my annual kms were for business. If all my gas receipts added to $1500 spent in gas, I could claim 10% of that $1500 = $150.00.
NB if you are taking children in your vehicle during business hours :-
1. Ensure you have parents permission - in writing
2. Ensure you car is insured for business use.
what about internet (we are a cable free home, so can internet be substitued for cable?)
You can claim a percentage of SOME bills because of course, the entire bill is not a business expense. Being in your home, you and your family are using power, heat, internet and water etc.
The calculation is based on sq footage of the whole house, sq footage used for the business, the hours of operation and the number of days a week you are open.
The formulas are in the documents on CRA site as are the permitted expenses/claims.