Home Based Child Care: Level 3

Home based child care
level 3

Table of Contents
INTRODUCTION...........................................................................................................................3
2.1 Explain how home based self childcare employed as a self employed as an employer...3
2.2 Explain self assessment process.......................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Childcare industry gives great amount of opportunities to run their own business as a start
up. If someone is passionate regarding love abs care for looking after the children then it is the
best industry as they can start their business such as home based childcare houses as it can be a
great choice for the individuals. Level 3 course will provide insights regarding work in home
based childcare as it will offers fun, financially lucrative ,rewarding childcare business. Present
Report focuses on Home based self childcare employed as a self-employed and an employer and
Describe self assessment process (Kalenkoski. and Pabilonia, 2020).
2.1 Explain how home based self childcare employed as a self employed as an employer
It is necessary in UK to register home based child care under two categories. this is
because it is a type of business in which services in offered to people. So, there are certain laws
and regulations which needs to be followed. thus, in home based child care it is defined as
Sole trader - It is known as simple business arrangement where one individual runs as
well as owns the whole business as it is also known as a sole proprietorship. Also, it is
considered as the simplest business structure as well as comparatively inexpensive and easy to
set up. It is also legally accountable for all the aspects regarding business. It makes all the
decisions regarding beginning and running the businesses as well as employ people. Thus
various people registered as a sole trader may only have owner and also it may consists of
additional employees and owner. They are the one who do not have a separate legal existence.
Within the eyes of law owner and business are similar. As an outcome for the debits of firm
owner is personally liable as well as at the same time might pay losses that can be made through
business. It is also known as unlimited liability. (Liu, 2018)
Advantages
 it is very easy to set up as well as operate
 It also enables to utilise individual tax file number ( TFN) to submit returns of several tax
 An individual is not consider as a worker for their own business as well as they do not
have to pay worker's compensation, payroll tax on income draw from their own business.
 It is very easy to change their business structure as if someone's wish to wind-up things
as well as if there is an increase of the business.
 If there are any losses happened within their business
Disadvantages