iv just finished filling in my tax return soi can inform tax credits etc of my earnings, and was just wundering if i anyone could give me a rough idea of how much tax i should be expecting to pay in january 2012 so i can make sure iv saved enough up,
my figures are roughly 16500 earned and expenses to take of 7600 which leaves roughly 9000 to pay tax on does anyone know how much this will be roughly please?
im hoping that iv put enough through its my 1st year so not too sure if i have, the things i have put through are
gas /elec percentage water/council tax percenatage (ncma) petrol tots some items from shopping arts and crafts things ncma membership ofsted reg fee new registars etc dinners out with minded children play areas out toys washing up liquid/toilet rolls/bin bag/ wash powder etc 10 percent wear and tear
can anyone esle please let me know if there are items or things i have forgotton please much appreciated thanks :0)
Of the £9K profit, 6475 is your personal allowance leaving 2525 that is taxable. tax is 505 on that and Class V nat ins is 8% (I think it is 8), giving another £200 aprox. So total of just over £700 by my calculations.
i see you have put petrol but what about road fund tax ,repairs, parts, insurance - you will have to add back some as a private proportion - you will know how much the personal private split is as you are doing the motoring. if your car is on a loan you can claim the interest on the loan (private proportion split as previous) BUT ONLY the interest not the whole payment. you are also entitled to capital allowances for the car - again with a proportionate % as private
great thanks for ur reply :0) what do youmean by capital allowancefor the car? i have baby brain at the min as im due to give birth lol, i did use a loan to purchase the car so the interset for loan divided over the loan term? thanks again for ur help
p.how much insurance would i put? and also road fund?
Car expenses are complicated. It is often best to claim 40p per mile (up to 10,000 miles) for business miles (this is instead of claiming for petrol), unless both your business and private mileages are low and your car is expensive to run. Whichever way you claim motoring expenses, you need to keep a log of what journeys you are claiming for (date, destination, miles).
For 2010/11 you will pay income tax at 20% on profit over £6,475 (so £505 for £9,000 profit) and Class 4 NI (this is in addition to the fixed amount of Class 2 NI you pay) at 8% on profit over £5,715 (so £262).
Oh and I meant to add that if the total of Tax and NI is greater than £1,000 (it doesn't look like it will be), you have to pay an additional 50% on account for 2011/12 in January 2012 and the same again in July 2012.
if you are using the car for say - 50/50 private/personal and your RFT is £200 you would claim £100 - same with insurance
regarding interest on loan say you borrow £5000 and are paying back £180 a month over 36 payments then in total you are paying back £6480, therefore interest is £1480 - divide this by 36 and the monthly interest is £41.11 - private proportion worked out same as above
capital allowances are a bit more complicated on cars - see HMRC website or google - capital allowances cars basically if bought after 6/4/09 it goes on emissions up to 110g.kg = 100% 110 - 160g.kg = 20% per year on a reducing balance each year and over you would need to check with HMRC
it may pay you to see an accountant for a quick chat - or have a good look at the HMRC web site (it is some while since I was practising - but I always found that I could claim enoughth to make my fee cost effective) - your local childminding group may have an arrangement with an accountant or be able to recommend someone)
cool thanks for your replies, does anyone know what the percentage of the amount that you have earned that you are allowed roughly to take off?
or are you allowed without any queries to take off as much things as you like /spent etci i thought id heard somewere that there was a limit you could take off without hmrc quering it, any ideas people?? :0)