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Original poster

Navy's handholding thread: Never done a tax return before! EEEKK

38 replies

navyeyelasH · 15/01/2011 17:49

Ok I think I have found the definitive list of all the things I can claim against tax and I have all my receipts, so far so good.

However I can't register for HMRC to send me password and have to call them on Monday. I'm going to start doing my tax tonight as I am babysitting.

Can I make this my official tax Q&A thread please?

The first thing I need to know is what does the form look like, does it need to know detailed expenses like:
1st Jan £80 food
2nd Jan £10 food

or can you can you say:

Tax year food bill =s £100's?

Thanks!

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mranchovy · 16/01/2011 00:13

You will need to fill in a separate form for your employment that looks like this - make sure you can find your P45 (you presumably don't have a P60) or failing that, your final pay slip as you will need the details from that.

Yes, if you have made a loss from childminding (large start-up expenses? - make sure you read the instructions carefully about treating purchases of equipment) you can offset this against earned income which may lead to a repayment of tax you have paid through PAYE. If you do this, make sure next year (ie 2010/11) that you deduct the 2009/10 loss from your profits for calculation of Class 4 NI, otherwise you will miss out on this relief.

Original poster
navyeyelasH · 15/01/2011 23:17

Can't believe it works it out for you, I thought this was going to be a right nightmare but it seems easy!

Does anyone know:

If I was an employee for the first half of the year and then self employed for the second half of the year would that all go on the form?

Also if I ended up making a loss as a childminder would they give me back some of my PAYE that I would have paid as an employee, or doesn't it work like that as the business costs can't be funded by PAYE earnt in past employment!

OP posts:
new2cm · 15/01/2011 20:23

That's great!

Although I had better check my stuff now because I can honestly say that by January 2012, I will be able to rely on my memory for an individual expense which incured, for example, in May 2010! I guess that's why everyone advises to do all the paperwork on a monthly, if not, weekly basis.

IShallWearMidnight · 15/01/2011 19:10

once you get access to the online system, it calculates it all for you. Much easier than pencil and paper Wink.

Original poster
navyeyelasH · 15/01/2011 18:53

Thank you everyone, it all seems like it's going to be very easy then.

Every month I put on my spreadsheet the grand total of my invoices and everything I have paid in expenses. So it sounds like I just stick that in the box and don't even need to break it down as no I do not earn over £68k, more is the pity Wink.

So now I just need to figure out what % PAYE tax I will need to pay and NIC Hmm

OP posts:
mranchovy · 15/01/2011 18:30

Crossposted there.

Note the following text from the notes I linked to:

"If your annual turnover was below £68,000, you may just enter your total allowable business expenses in box 19 rather than giving a more detailed breakdown." so unless you are a really well paid childminder, you don't have to worry about 'cost of goods sold or used' etc.

PositiveOutlook · 15/01/2011 18:24

If you became self employed during the current tax year your tax return is not due until Jan 31st 2012 at the latest (taxes for year up to April 2011)

new2cm · 15/01/2011 18:12

Does this mean that if I began childminding since Arpil 6th 2010, I don't need to fill out a tax return until next year?!

mranchovy · 15/01/2011 18:04

Take a look at the paper version of the relevant form and the notes that go with it - this is exactly the same as the information you have to give online.

If you haven't applied for an online registration yet you might not get the confirmation code for a week (it comes in the post) so you can use the time to prepare everything.

Merle · 15/01/2011 17:57

Hi Navy I'm not a childminder but I have done my tax return online for three years. I am not very numerate and I find the whole thing boring but I have been amazed by how easy it is to fill it all in, when you get going.

I did the last one on Thursday.

You don't need to break your expenses down in months. It is just a total figure. In fact I think that food would probably go under the category of 'cost of goods bought for re-sale or goods used'.

There are categories for wages, travel expenses, rent, rates, insurance, repairs, phone, stationary etc. It is fairly broad.

IShallWearMidnight · 15/01/2011 17:56

here is the self employed paper tax return - the online version is laid out differently, but if you collate your info on the paper version, it's straightforward to transfer it.

Original poster
navyeyelasH · 15/01/2011 17:56

Oh that's ok. So I literally add up my receipts and add my invoices and that's it?!

What's the deal with petrol, I've kept a mileage record but is that good enough "proof"?

PS> thank you chabbychic.

OP posts:
chabbychic · 15/01/2011 17:54

It's really easy online - just have to put down total expenditure and income for the year, no breaking down of it whatsoever.

Chill!

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