Unregistered daycare and taxes?

Hey everyone. I have recently decided to stay home and start my own daycare. I started off having one child only part time and we decided on no receipts. She has asked me to take her son on full-time and I would like to offer receipts. I have been informed that you do not need to register as a business and you can still provide receipts and claim renovations groceries craft expenses etc. come tax season. I am hoping that someone can confirm this information is correct. I'm also wondering what to do about taxes should I be putting money aside? I don't want to be screwed over come tax season. I'm not looking into paying into EI as I don't plan on going onto maternity leave. Is it if you make a certain amount that you then need to pay tax ? I'm new to all of this and just hoping to get as much information as possible. Thank you

I am in Ontario too if that helps

First it is illegal to NOT give a receipt. It doesn't matter if you are registered as a business or not. You have to give a receipt and you have to claim all money they give you.

You can claim daycare expenses and a % of your mortgage/rent, heat, hydro, water etc. Food that you buy for your daycare children, craft supplies, equipment etc. Keep all receipts. Photo copy them and staple the original to the back of the photocopy. receipts will fade, the photocopy will help prove you are claiming what you are claiming.

You need to claim all income no matter how little. You will more then likely need to pay taxes. Save 10 to 15% of each pay that should cover your taxes.

For more information on running a home daycare in Ontario check out Running a High Quality Home daycare business

Whether or not you register as a business you need to make sure you are following all the home daycare laws: Childcare and Early years Act (CCEYA) you can find information on these laws on the Ministry of Education website.