CM CLUB: dum dum duuuuuummm..Tax return time!

[PinkChick]

i HAVE actually searched previous threads as i put this type of thing on every year haha, but am struggling to find info online about 09/10 personal allowances etc..anyone point me in right direction please?.x

OK, found P/A, its 6475.
earned £10400, do i take 6475 off this amount first, then 10% wear and tear and everything else?

No
Take off all expenses then take 6475 off what's left

oh no, i havent wrote down any expenses, only been minding for a few months, I am all confused about expenses, what do I have to do regarding tax?

Turnover = all the money coming in
Expenses = everything you spent purely for childmindng (incl 10% Wear & tear 10% council tax 33% gas/elec - if you are F/T)

Turnover-expenses = profit

for profit over 6475 tax is due at 20%
Plus NI - But I can't remember the numbers for that

If you have been employed between April 09 & April 10 then it's more complicated

I was only registered in March 2010 only had mindees from June 2010, Had them for 3 days a week but will leave on Friday, I will have a new mindee starting Monday F/T 57 hours a week, how do I put that on the Tax form,

Sorry pinkchick for bombarding your thread.

Then start keeping records (registration fee, insurance etc you should have records for)

Then you will be ready for next tax year

thanks Katy, so got my figure minus 10% w&t, utilities at %, food & expenses/p;i/ncma reg etc..get that end figure and deduct 6475 and the remaining is what i pay tax on?..but what if the amount i have left before that is less than 6475? do i not pay tax then?

and which amount to i use to calculate how much class 4 i pay?...thanks so much katy, im going to write all this down in my fiile for next years as i must have a memory like a seive .x

boppetybop, dont worry ..katy is the one to ask, shes our guru ...its vital you keep records of child hours/days and expenses otherwise youll be in a right mess in january .x

Lots of info on the hmrc website and loads of advice on here, www.hmrc.gov.uk/manuals/bimmanual/BIM52751.htm

pinkchick i think im already in a mess, I can't find some reciepts and worte nothing down, I remember what ive brought but cant remember on what dates.

Danthank you, i hope i can get my head round it

Pink - you pay class 4 NI on any profit so if your earnings - expenses comes to less than your personal allowance then no tax or NI 4 to pay.

The first year that I made any profit I didn't realise I had to pay class 4 NI aswell as the class 2 that I pay quarterly so unticked the box. I then got a letter the following year asking me to explain why I was exempt. Hmm, I'm not so had to cough up !!!

As a CM you don't have to keep receipts for items under £10 which may help, although its good pracrtice to keep everything. There is a childminder who has produced an accounts package for CM's which I use & is very good. Last time I looked it was a one off payment of £15 and she provides support if needed and periodic upgrades (for a small fee. www.childsplayaccounts.co.uk
If you register to file your tax return online you get longer to do it (deadline 31st Jan) and they calculate how much tax you owe (or are owed) and any class 4 NI

boppetybop, there have always been items i have lost receipts for but my business advisor said IF they ever wanted to question it (for example my trampoline enclosure) i could always show them it!
even tho my totals over the year are normal, i might pay £120 in top ups to send pic messages to my parents but i dont have reciepts as it was £10 every month and if absolutely neccesary i could get o2 to run a print off of my top ups..however i DO think good books are the key so a nice little folder for receipts is the best way to go. good luck.x

ok, so i havent taken off my utilities yet and already the amount is below 6475..so will i not pay ANY tax? (fingers and toes crossed lol).
every cm i talk to has said they rarely pay tax, so this must be what they mean, i have spent lots in improving the business and the upkeep of everything, so with 10% w&t, food/drink/ snacks and expenses (toys/toilettries/resources/insurances etc) its took me about £2ooo below?!x

Do all the sums - add in all the amounts; if you make a loss then you can offset next years profit from it

urgh not feeling too good tonight, hoping it passes as new baby starting tomorrow..as its taking me all my effort to summon up the energy to lift my pen can one fo you lovely ladies remind me which percentages go where ie:council tax, water, gas and elec..thankyou so much, sorry for being lazy.x

got them thankyou anyway..have got it all wrote down and taking off wear and tear, utilities, food and expenses, its come in below the personal allowance..so am hoping i can get online now to fill it in and have a nice pot of pennies to buy new toys for the babies and pay some bills 8-)...thankyou all for all your help.xxx

ta-daaaa DONE . Thankyou all for your help.xxx