Skip to content

Part of Accotax, an ICAEW regulated firm. Offices in Morden, Croydon, Chelsea and Mitcham.

0203 4411 258[email protected]

WhatsApp

Accountants for childcare and care providers

Staff are the biggest cost, and the rules on pay and funding are strict. Accurate payroll and clean funding records protect both the business and the people in its care.

  • Payroll for limited companies
  • Bookkeeping
  • Year-end accounts

What does an accountant do for childcare and care providers?

Care and childcare accountants handle VAT-exempt income, payroll compliance, government funding and regulated registration costs. Most providers need the Growth package at £75 + VAT a month.

What is different for you.

The parts of the rules that matter most for this kind of company.

01

VAT-exempt supplies

Registered childcare and welfare services are generally exempt, which limits the VAT you can reclaim on costs.

02

Payroll and minimum wage

Sleep-in shifts, rota changes and training time must be paid in line with the rules.

03

Funding and grants

Government-funded places and grants are accounted for in the right period with the right conditions.

04

Registration and inspections

Regulatory registration, DBS checks and inspections bring recurring costs that must be recorded.

How the work differs for childcare and care providers.

The parts of the job that matter most for this kind of company, and how we handle them.

01

Exempt income and VAT on costs

Registered childcare and welfare services are generally VAT exempt, so you do not charge VAT, but you also cannot reclaim most VAT on your costs. That makes every pound of equipment, repairs and supplies more expensive than for a taxable business.

We check how each income stream is treated, record VAT as a cost where it cannot be reclaimed and plan purchases with that in mind.

  • Income streams classified
  • Irrecoverable VAT recorded
  • Purchases planned
02

Payroll, rotas and minimum wage

Staff are usually the largest cost. Sleep-in shifts, split shifts, on-call time and training can all affect minimum wage compliance, and rota changes mean pay varies every period. Holiday pay for irregular hours and pensions for part-timers are frequent gaps.

We run payroll every period, test it against minimum wage rules and keep holiday and pension records current.

  • Rota-based payroll
  • Minimum wage tested
  • Holiday and pension records
03

Funding, fees and regulation

Government funding for places, local authority payments and parent fees arrive at different times and under different conditions. We account for each in the right period and reconcile them to the bank.

Registration, DBS checks, inspections and insurance are recurring costs that are recorded and planned for.

  • Funding recognised correctly
  • Parent fees reconciled
  • Regulatory costs planned

The usual way, and ours.

Typical provider admin

  • VAT on costs overlooked
  • Payroll not tested
  • Funding booked on receipt
  • Pension gaps

With us

  • Irrecoverable VAT planned
  • Minimum wage checked
  • Funding matched to period
  • Pensions current

Rules to watch.

Rule

Pension and holiday pay

Auto-enrolment and holiday accrual for part-time and irregular staff are common compliance gaps.

Your year with us.

What happens, and when.

  1. Each pay periodPayroll, holiday and pension.
  2. MonthlyFunding and fees reconciled.
  3. Before year endEquipment and pension decisions.
  4. Year endAccounts, tax and funding returns.

Mistakes we prevent.

Avoided

Treating sleep-ins as unpaid

Minimum wage rules can apply and back pay can be large.

Avoided

Reclaiming VAT on exempt income

Costs linked to exempt supplies are largely not reclaimable.

Avoided

Late funding records

Conditions are strict and evidence is needed.

Fixed fees for childcare and care providers.

Prices exclude VAT. Final price depends on turnover and options.

Essential

Micro and new companies

£45.83a month + VAT

  • Statutory accounts
  • Corporation Tax return (CT600)
  • Confirmation statement
  • One director Self Assessment
  • Deadline reminders
Buy onlineOr get a quote first

Complete

Trading and online businesses

£62.50a month + VAT

  • Everything in Essential
  • Monthly bookkeeping
  • Quarterly MTD VAT returns
  • Director payroll and RTI
  • Quarterly review call
Buy onlineOr get a quote first
Recommended

Growth

Growing, data-led teams

£75a month + VAT

  • Everything in Complete
  • Payroll for up to 5 employees
  • Priority accountant access
  • Quarterly tax planning
Buy onlineOr get a quote first

Rated 4.9 out of 5.

“He took the time to explain every step of the process and made a complex situation much easier to understand.”
Hugo AlvarezGoogle review of Accotax
“They take the time to understand how our business works and what our needs are.”
Mael LeboucherGoogle review of Accotax
“Very prompt in responding to questions and patient with us even when we seem to be slow.”
Mansur LimanGoogle review of Accotax
“He took care of everything promptly and kept me informed throughout, which was greatly appreciated.”
SofiaGoogle review of Accotax
“It was a pleasure working with Anum on our accounts. The whole process was swift and effortless, and it was one less thing to worry about.”
Jamie FletcherGoogle review of Accotax
“The work was completed promptly, my tax return was successfully filed.”
Sergey MGoogle review of Accotax

Childcare and care providers: questions.

Is childcare VAT exempt?

Registered childcare and welfare services are generally exempt from VAT, which means no VAT is charged but input VAT on costs is largely not reclaimable. We confirm how your services are treated.

Accounts for childcare and care providers, sorted.

Tell us about your company and we will confirm your fixed fee within one working day.