Advanced search

This topic is for discussing childcare options. If you want to advertise, please use your Local site.

Tax credits special rated for CM's??

(17 Posts)
vicki2010 Fri 19-Jul-13 14:39:54

If you are looking at the overall benefits checker then if you are a registered childminder and eligible for housing benefit they will only take into account a third if your profit when you claim. Do your accounts as normal,then they will work it out. It won't give you any more tax credits though, they use your full profit figure.
I am a childminder and have been doing this for 5 years so I know it's right. So as an example if I told housing benefit my income profit for the year was 3 thousand,they would base your claim on only earning 1 thousand. So in theory,our housing benefit is based on my husbands earnings because he earns an average amount and my profit for last year was just 700 as my expenses were high and then the personal allowance is taken off so housing benefit take just 230 which is a huge difference as on paper I'm basically not earning anything over the year but I am if you see what I mean?

Maryann1975 Fri 19-Jul-13 13:08:45

Moogy, I wouldn't just take of 2/3. Only take of your actual expenses etc as HMRC expect you to do. To do anything else is asking for trouble. It's a business and has to be run properly.

Maryann1975 Fri 19-Jul-13 13:07:09

Twinkle. Can I ask for the source of that information please. It just doesn't sound feisable to me, but I am happy to be proved wrong. I just don't see why they would take of extra cash for no reason. What you earn and your expenses are what they are, why would they mess with the numbers?

moogy1a Fri 19-Jul-13 08:18:45

twinkle really? so i take off my expenses etc. then tax credits take 2/3 off that figure?

Twinklestarstwinklestars Fri 19-Jul-13 07:33:29

You should just do your accounts as always then tax credits will ask for that figure then they'll take 2/3 off for their figure just like they take £100 off for every week you're on maternity leave

moogy1a Fri 19-Jul-13 07:33:25

I thought that maybe if you have children they give you a bit more as we're not allowed to claim the childcare element for ourselves IYSWIM

moogy1a Fri 19-Jul-13 07:15:53

On the calculator thing though they ask for income AFTER expenses etc. so net profit. are they then taking more off?
And for tax purposes should I be taking off 2 /3.
At the moment I do it as Maryann does

Goldmandra Thu 18-Jul-13 22:51:12

Maryann they probably don't use your figures apart from the gross. If it's anything like Carer's Allowance they take your gross, disregard a certain amount for expenses (sounds like this is two thirds) and take the figure left as your income.

Maryann1975 Thu 18-Jul-13 22:29:00

Who disregards it? I do my own accounts. I start with the amount I have earned in total. I then takeaway my expenses. I then take away 10% for general wear and tear. This leaves me with my profit for the year. Does the tax man then take away more for some reason? My expenses are no where near two thirds of my income. Can you give me a link to this so I can check it out please. I think I may be going wrong somewhere.

ReetPetit Thu 18-Jul-13 21:38:44

they disregard 2/3 of your income as a childminder for tax purposes.

mum382013 Thu 18-Jul-13 21:29:01

im no expert but im sure someone will be along with the link you need

mum382013 Thu 18-Jul-13 21:27:57

not a special rate as such, just that they only take into account a third of your gross

mum382013 Thu 18-Jul-13 21:27:11

its about the level of expenses that is disregarded

Maryann1975 Thu 18-Jul-13 20:10:26

I didn't know there was a special rate for childminders. I've tried googling and it's coming up with nothing, but I can't find anything about fire fighters, coastguards or the ta either.

MaryPoppinsBag Thu 18-Jul-13 19:07:36

I've never heard of this, but we don't get Tax credits now anyway.

Google the question - there are a few threads on other sites about it, saying but only applies to benefits such as housing/ council tax benefit.

ImNotBloody14 Thu 18-Jul-13 18:13:45

Id be interested to know this too as im registering.

moogy1a Thu 18-Jul-13 18:04:02

DH has just resigned form teaching so I was looking to see if we'd get tax credits next tax year.
On all the benefit / tax calculator sites, it asks specifically if you're a part time fireman, coastguard, member of the TA or a childminder "as this affects your entitlement".
Why would this be?
Does this mean we get more or less if we're some sort of special case?

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now