Childminder and expenses

[monopolyfreddy]

So is this situation out of order.?

A childminder can put toys etc through as expenses so they don't have to pay tax basically. Childminder A is using some receipts from their own child's Christmas presents etc on their tax returns. Is this unreasonable?

When you say they put toys through as expenses "so they don't have to pay tax basically" that's not really the right way to look at it. You pay tax on your profits - which is the income less expenses. A childminder needs to buy toys (and other supplies) to use in their business, so that gets deducted from the fees paid by parents. Same as a shop would deduct the cost of goods from cost of sales to work out profits, or a hairdresser would deduct costs of equipment and dyes.

Putting receipts through for toys which won't be used by children they mind isn't allowed, to be fair to you.

why does it bother you?

It's only offsetting her tax return, not paying for the presents is it? Possibly fraud but it wouldn't keep me up at night considering the shit other other real criminals get away with.

Also if the tax man wanted to check she have fun exposing three new ipads for example all bought near Christmas, or maybe not.

Most of the toys,books,jigsaws etc that I use for minding once belonged to my own children. However they were originally bought for my own kids, not childminding children so it wouldn't occur to me to put them down as an expense.

You mean - doesn't have to pay as much tax, not doesn't have to pay tax. She still has to buy the toy. Spending £50 to save a fiver isn't exactly a high value crime.

Oh ffs leave them alone

It'll be tax deductable, not free. Please get the facts correct before accusing people of fraud.

Seriously what does it even matter?

This. I work for myself (not childminding) and I wouldn't and don't do the equivalent of this. For things used partly personally and partly for the business, I will generally offset a fair proportion of the cost, that reflects the proportion of business use.

It’s an expense because those toys will be for her mindees as well. She will still be paying tax on her profits.

Well, it is fraud, if the childminder is claiming that toys she bought for her children were actually bought for the children she cares for

And I don't condone fraud

And I don't like the "good for her" comments on this thread. Paying less tax than you should has an impact on all of us

But, this is small fry compared with non doms, clever tax wheezes in the Cayman Islands etc, so I'd prefer to see Govt taking action about that

Why on earth does this trivial matter bother you? Why aren't you more interested in the massive corporation avoidance of taxes on a huge industrial scale rather than this low level action of childminder who is trying to make a living? I truly despair of some people.

Wait till you hear we can put our trainers through as an expense too

Can we? I'm so new to Childminding. Any other tips?

I think a lot of people who have no experience of self employment think claiming something "on their tax" means they get the whole amount refunded/off their tax bill. I've had to explain this to a few friends that this isn't the case that I'm getting stuff for "free". I still paid for it. I might just pay £2 less tax because of it.

@storypushers you can do a % of your energy bills, wear and tear on furniture used for CM. Mileage.

Lots of information here:

www.mortonmichel.com/news/childminding-accounts-made-simple#:~:text=In%20addition%20to%20the%20above,wholly%20and%20exclusively%20in%20childminding.

PACEY also excellent for information if you become a member there's lots of training and they email you to keep you informed of all the policy changes which is essential in my opinion as it's always changing!

I also like childcare.co.il for finding work and they also have lots of training included in membership.

All the memberships and training also tax deductible

I had all sorts of unclaimed minor expenses as a childminder so it's probably a simple way of offsetting some of those losses.

Wow. How much do you think she is benefitting from this ? Petty minded or what ? Get yourself worked up over something worth worrying about.

What's really sad about this is that the childminder obviously considers you a friend and someone safe to confide in and your considering grassing g her up and getting her a criminal record. .

Is your child happy there?

It's like the childminder equivalent of stealing tippex.

Think we must have read a different post. No mention of being friends, or 'grassing' her up or the OPs children using that setting.

I agree that most toys end up being used for mindees anyway!

If the childminder is good, and my kids liked her/him, I wouldn't split hairs over this. Plenty of SE employed people pass off their petrol as expenses when they use their cars for both personal and professional uses.

Whilst I wouldn't dare to do it myself, I'm more pissed off that I pay for MPs to put expensive lunches and second homes on expenses tbh. There are much bigger tax evaders in the world. If she's got her own young children, she's probably barely over the tax threshold anyway.

I couldn't get worked up about this really. It's peanuts in the scheme of things and at some point this kids will probably play this toy when her child has outgrown it.

No we can't. The only clothing we can put through is anything with our business logo on it. You can't put footwear through as you'd have to buy shoes anyway.