Gross income : 14700 pounds / 4000 pounds expenses too much ???

[Childminderindistress]

I think I have done everything alright but I cant help being stressed of putting too much expenses. I owe the tax man 1900. Does it look right to you ? Thank you !

Childminderindistress - sent you a PM

no thinks its 6475

me too katy mac lol

I forget what personal allowance is but assuming 6475 theb

turnover 14700
expenses 4000
personal allowance 6475

you would be taxed on 3955
so tax is 20% of that and tax is £791

or less if you can increase expenses :)

unless you have another job or rent out a room or have other income of course

Nope no other job or any other income...

I'm sorry I still dont get where you go the 791 pounds as they ask me for 2 k. I
I didnt validate my tax return online yet as I'm obviously going to review everything following your advices.

Sounds like your personal allowance hasn't been taken into account. Hope you manage to get it sorted out.

RealityIsKnockedUp there is no blanket allowance of 20%.

Childminders working at least 40 hours a week can claim 33% of heat and light costs and 10% of water rates, council tax and rent OR they can claim a reasonable proportion of these expenses calculcated on some other basis - so your reasonable proportion may be 20%, but we have no idea what Childminderindistress's is (try saying that!)

The £1,900 presumably includes £600+ payment on account for 2011/12 so it is 'only' £1,300 for the current year.

Is this your first year? Have you claimed all of your start-up costs (registration, training and travel to training etc.) as expenses, and all your equipment purchases as Annual Investment Allowance?

ValLongstreet you are forgetting Class 4 NI.

Ok I have just gone back to my tax return, they ask me to pay : 1900 by the 31/01 and 600 pounds by the 31/01.

Last year I only had a bit more than 12000 pounds gross income and only paid 870 pounds ?

There is something not right there !

Shall I take off myself the personal allowance from the gross income or do they take it themselves ???

You cant begin to imagine how much I appreciate your help !

I am indeed. And forgotten about payment on account for next year.
Am glad you appeared mranchovy - was hoping you would :)

Ok sorry I'm confusing you, I have to pay 1200 of class 4 nic and the rest is taxes.

Ah, now that doesn't sound right. It looks like the NI has been calculated on your whole turnover without deducting any expenses or the £5,715 lower earnings limit.

Can you print out the calculation and see if you can work out what's happening?

Or just start again?

Can you see the calculation below :

This section provides you with a breakdown of your full calculation.
Profit from self-employment £10,344.00
Total income received £10,344.00
minus Personal allowance £6,475.00

Total income on which tax is due £3,869.00

How we have worked out your income tax
Amount Percentage Total
Pay, pensions, profit etc £3,869.00 @ 20% £773.80
Total income on which tax has been charged £3,869.00
Income Tax charged £773.80
plus Class 4 National Insurance contributions £4,629.00 @ 8% £370.32
Income Tax and Class 4 National Insurance contributions due £1,144.12
Income Tax and Class 4 National Insurance contributions due £1,144.12

I'm completely looooooost.

This return has a bit more than normal as had dh as an assistant for a few months so had more kiddies. But yes, I still have quite high income as I work 55 hours min a week, have quite a lot of overnight stays plus I have a variation for more toddlers so that makes the income more than it would be.

Afraid I can't help with you latest query as something doesn't look right. I'm still trying to get mine all finished! :)

and how much on account towards next years tax?

Katy - I need to give them 572 in july.

I thought you had to give them some now

So what makes up the difference between 1900 & 1144.12?

In the meantime I made some changes, tomorrow they want :

This section provides you with the result of your calculation.
Total tax, Class 4 NIC and Student loan due for 2009-10 £1,144.12
Plus
First payment on account for 2010-11 £572.06
Payment due by 31 January 2011

This amount does not take into account any 2009-10 payments on account you may have already made.
£1,716.18
Second payment on account for 2010-11 will be due by 31 July 2011 £572.06

They want 1.716,18 pounds tomorrow not 1900 as I added some expenses while I chatting with all of you.

Please tell me it all makes sense now !

I think I'm going to start from the beginning to be sure !

Yes that all makes sense.

You have £1,144 of tax and NI to pay for 2009/10. They assume you are going to have to pay the same amount for 2010/11 so they take half of that now, and half in July. If you know that your profits are going to be less, you can apply to change this.

Please help can someone please tell me as I do my tax return on line I have to do long one so pain. But do I put wear and tear through as epense and my full gross income as income or do I take it off first then put that figure as my income?

Also if you put wear and tear as expense is it under repairs and renewals or other or something completely different as all info on net is for short return.

sorry to sound silly but how do you work out what your heating and lighting bill is? Do you just assume a certain percentage off your household gas and elec bills?

That's a good question Paula! I believe that most people assume that all of the electricity and gas bills are for heat and light (although obviously some is for cooking, television and other appliances).

All of which are used for minded children. I work 46 hours per wk therefore claim 33% annual as per guide. You cant possibly work out what of your annual bill is for purely this or that. So it says full time over 40hours is 33% anything else could be worked into your food expenses. ? Or just leave it at the percentage claim off your annual bill