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Paid childcare

Discuss everything related to paid childcare here, including childminders, nannies, nurseries and au pairs.

Doing tax return, some advice please (thanks)

33 replies

MUM2BLESS · 30/12/2012 21:49

I am claiming for the following:-

W&T
Water rate
Concil tax
Gas
Electric
General expence for c m stuff

(no car expenses as I have been walking)

Never claimed for telephone or mobile expences since I started over four years ago.

Please explain how i can claim contents Insurance and mortgage Interest?

What else can I claim for. Still getting my head around what I can claim for.

Thank you for your help at this busy time Smile

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MUM2BLESS · 31/12/2012 17:21

Thank you so much MrAnchovy Are you an accountant?

How much would it be to have an accountant to do my books?

A lady came to visit me from the tax office quite a while ago. She said c m don't really need to use an accountant.

Its not hard to do my tax return its takes time to do it.

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MrAnchovy · 31/12/2012 00:02

As far as I am aware only the items listed on the HMRC website are claimable.

This is totally the opposite of the truth - ANY revenue expense can be claimed that is incurred wholly and necessarily for your business (even if it is one part of an expense another part of which is incurred for another purpose, like a TV license for a TV which is used exclusively for your business 40% of the time and by your family 60% of the time) EXCEPT certain expenses, mainly expenditure on building work (other than maintenance and repairs) and client entertaining (which I have never known a childminder do Grin).

MrAnchovy · 30/12/2012 23:54

You CAN claim a proportion of mortgage interest if you use any part of your home part of the time EXCLUSIVELY for childminding (this means you cannot be looking after your own children at the same time). If you can do this you can usually claim much higher proportions of Council Tax, water rates, service charge ets. as well.

The calculations are not simple though, and I don't recommend anyone does this themselves - you need to get an accountant. Trying to get something sorted before the end of January is not going to be easy so you might need to submit the accounts yourself and pay the tax and then resubmit and claim a refund later: note that any alterations for 2008/9 must be submitted by 5 April 2013.

A proportion of contents insurance CAN be claimed (and buildings insurance too if you are using the arrangements mentioned above). It can be difficult to apportion how much of this relates to your childminding business: HMRC have accepted 10% in some cases, but this is no guarantee that if they inspected you they wouldn't dispute it.

MUM2BLESS · 30/12/2012 22:39

Thank you for that much appreciated.

Its been busy for me this year. Grabbing the time to catch up on things whilst I have no cm kids.

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Muminwestlondon · 30/12/2012 22:32

Print off the online bill or statement and keep it with your records, even an email confirming payment should have the relevant date, amount account number etc. Keep your bank statements and invoices/receipts for all bills paid. Keep a record of the basis you have used to work out the apportionment between business and private use and it is good to get into the habit of writing up your income and expenditure records regularly, rather than trying to reconstruct it after the end of the tax year.

MUM2BLESS · 30/12/2012 22:21

Thank you so much.

What happens if you have bills but not the paper form. Some companies do it on line, where do I stand with these?

I think I have been paying too much tax as I have not claimed for some things

Thanks

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Muminwestlondon · 30/12/2012 22:12

You cannot claim mortgage or insurance unless it is directly related to the business (e.g. public liability insurance). As far as I am aware only the items listed on the HMRC website are claimable. Otherwise you are effectively asking the taxpayer to finance your household expenses and if they are not directly related to the business why should they?

apotomak · 30/12/2012 22:04

You cannot claim mortgage ... not even the interest. Tried that last year but my accountant said I'm having a laugh Grin I was trying it on. It would have been nice to be able to claim it.
Not sure about contents insurance ... we're claiming 10% of wear and tear though.