Please help me with my taxes return !!!

[Childminderindistress]

Hi I hope you can help me !!! I'm doing my taxes online but I dont know how to break it down !! for 2009-2010, I have earned 14000 and have 2020 of expenditures. I understood we have 6475 pounds of personal allowance.

My question is when they ask us the total amount/turnover, what should I put ? 14000 ?

And then they ask for personal allowance : Shall I add the personal allowance which is 6475 pounds plus the 2020 pounds ?

Thank you very much for your help !

If you're doing it online your personal allowance is taken off automatically. Your total turnover would be 14000 and then there is a part where you put your total expenditure.

You will also have to pay Class 4 NI contributions.

It's quite straightforward online (I think) but for the first time it can be daunting.

£2020 expenses doesn't sound that much - I think you will end up paying quite a bit of tax!

Are you sure you only have £2020 worth of expenses?!? We are allowed to discount 10% of our gross income for wear and tear on our property, so if you have allowed for that fact you're suggesting you only incurred £620 of expenses. I'd like to help but the support you need is far greater than can be gathered from a forum and i think you are likely to end up with a huge tax bill if you get this wrong and should probably seek help from a proffessional. The Tax office has run courses before to help people fill out their tax returns so perhaps you could contact them for support.

I also think your expenses are very low, given what we can claim for.In 5yrs of minding I have never paid any tax!! CAT me and I will send you a list of what I put through as expenses x

Underpaid, I sent you a message !!! I'm very worried

Probs with email at moment, will get back to you tomorrow. You have till end of Jan so dont worry too much at moment - I normally do mine at the 13th hour !!

So do I but I just want to be more organised this time !!! Thank you so much for your help !!!

Just to add that before your expenses you can take off £1,400 for wear and tear so this would bring your total expenditure to £12,600. Then you take off your £2020 which would bring your net profit to £10,580.

Take off £6476 personal allowance and you will pay tax and Class 4 NI contributions on £4104.

There's only two years in 7 years childminding that I've never had to pay tax so I expect you will have to pay something.

Oh yes I'm expecting to pay something but almost 3,000 pounds ??? I seriously have to review my expensises, I'm missing something ! Thank you for your help !!!

No not £3000!! you only pay tax on the £4104 at the lowest rate.
If you go on the hmrc website there is a list of everything you can put through as expences, as others have said yours does seem low, have a good think about what you have spent.
Do you drive, have you claimed your 40p per mile or car expences.

After the calculation is done, it tells me that I owe 2660 pounds on the 31rst of january and 888 pounds on the 31rst of July. I didnt save it as I must have obvioulsy done a mistake.

the reason the tax is so much is that you have to make payments on account towards next years tax if your liability is over £1,000, there are two payments on account, one in Jan and one in July.

If you want to see if you have the right expenses try sitting down and going through what you do in a week and where you may incur and expense, then there's things that are extra costs like maybe stationery, printer ink, computer use, broadband(if you use internet for resources/research etc etc)

Whatever you claim keep in mind that if HMRC enquire into your tax return you must be able to justify the expense.

I didnt know you had 2 pay twice, I didnt pay anything last july. I really hope it is not 2666 pounds I have to pay in January. I'm going to trought it tonight.

You only have to make payments on account towards the next year if your liability is over £1,000. HMRC would have sent you a statement if you had to make a payment in July.

The payments on account aren't paying twice, you pay in advance for the next year

Ok I understand, last year, I was under 1,000 hence why I had nothing to pay in July 2010.

I redid my calculation following correctly the guideline, one of the mistake I did is with the wear and tear, I have calculated it based on the total expenses instead of calculating it base on my gross income. Also only took 10 % off my electricity/hitting when it should be 30 %. So now the total taxes I owe is 2000 which is much better !

have you included all your expenses:
travelling
outings
food
cleaning materials
arts and craft things
insurance
stationary
printer ink
postage
presents you buy for the children
wear and tear
% council tax, rent (if applicable), water, electricity, gas, phone, tv
toys

remember that it is not a requirement for you to have a receipt for any expense under £10.

I am so rubbish at this that I have an account to do and while it costs me over £200 a time, it is worth it (for me and my family's sanity!)

Thank you number 4 !!! Everything is pretty much covered apart from cleaning materials (can I claim for the cleaner ?), I didnt do printer ink as well, and the presents for the children. I'm pretty good at keeping the receipts, just not good at maths !