It is easy for CMs to fiddle the taxman!

[sassyminder]

This is what I was told by a colleague. Unless you get paid from the government direct into your account, most CMs don't declare all their earnings to avoid paying too much tax. What you make of this?

Bull! Never heard such a pile of poo in my life lol. Firstly working family tax help parents with childcare cost and they have our ofsted number so we cant fiddle that. And bearing in mind we have to do observation on the kids and attendance sheets. How do you explain all that to taxman. Infact childminding is probably one of the only self employed jobs you can do and not do as they say foreigners. We have to declare all children. We dont need to fiddle with all the expenses we get to put through. :-)

my families all pay directly into my bank account - how can that be fiddled?

I actually get paid off 3 mums in cash. As its easier for them to draw from bank. I still put through books. I just use it for shopping living etc. Still has to be declared.

Basically thats saying that anyone that is self-employed can fiddle the tax man.

But remember its breaking the law, I know of a childminder who was investigated by the tax man and said it was horrible, they went through their accounts with a fine tooth comb.

I wouldn't dare, just like I ensure I have car insurance and tax, breaking the law is breaking the law and if caught will be punished.

and as menee says, its even more difficult for us, as again, by law we have to hold information for all the families, so would be obvious if I have 6 children on the books but said I was only earning a paltry amount of money.

All my families claim help with their childcare.
Each parent tells the tax office what they pay in childcare costs.
We submit a tax return stating what we have earned.
The tax man tallies my tax return with what parents have told them what they pay for childcare.

How can I claim that I've only earned X, when the tax man KNOWS I've earned Y?!

But, any adhc or extra goes I my books, so I actually submit more to the tax man than they have me down as earning.

What everyone else had already said.

Besides - as if we haven't got enough paperwork to do without having an extra set of accounts just for the taxman!

Anyone SE can cheat the taxman but when you provide invoices, get govt funding and have to keep that much info it's certainly not easy...

Plus if you don't declare correctly you may end up underpaying NI etc and then you're screwed when it comes to claiming maternity allowance or anything else based on earnings...

i never forget the CM i visited who asked how i would be paying because if it was vouchers she would have to declare it . needless to say she did not get my business.

as i didnt earn enough to pay tax i would be wasting my time 'fiddling the books' Seriously though any self-employed person can fiddle, think of all those cash in hand builders, mobile hairdressers, and I bet some ebay-ers never declare their income. As a childminder I have to keep a register of the children?s attendance which would make it a simple job for the tax man to workout my income, the register has to be accurate for Ofsted purposes, and I have to keep receipts for everything I spend over £10?.

Hmmmm, OP has gone AWOL.

I can't speak for all minders but I certainly don't con the tax man, I'd be too afraid of getting caught!!

If anything I don't declare enough of my expenditure, actually conning myself...

It's not worth the hassle of trying to fiddle it! The tax breaks and allowances a cm can claim are good enough without trying to fiddle the system.
I hate dishonesty!

was OP an HMRC tax inspector ???????

I dont make a decent living from what I earn for the hours I work - it pays some of my bills and puts food on the table. I'm too honest to 'fiddle' - says the girl who once handed £10 back into the bank because I got too much money out of the cashpoint and was made to feel like I was the dishonest one!!!!!

Like others have said, if parents are declaring what they are paying us, how can we declare something different?

Really??

I don't suppose your colleague told you how it's done, did she? Because I'm blowed if I can work it out - not with all the record-keeping we have to do!

She says she asks parents to tell the tax man that they use her less hours than they actually do and does not have every children in the books. Anyway this person didn't even know she could claim expenses such as food and equipment as tax relief and doesn't even know what does the word ratio means...

Oh, I see!

A dishonest, unprofessional woman who gives the rest of us a bad name, then.

I'm so glad you didn't use the word "friend" to describe her!

Not a great "service" she's providing, then, is it?

Erm so if I went to this "childminder" for want of a better description & I wanted to claim tax credits for childcare, I'm absolutly certian I'd tell the tax man it only cost me £100 a week intead of £150 - cos I would so want to help this "childminder" not pay tax & for me not to get as much help from the government as I am entitled to

"didn't even know she could claim expenses such as food and equipment as tax relief and doesn't even know what does the word ratio means..."

Blimey - is this woman even registered?

sorry but if shes a childminder she would know she can claim expenses as its all explained to you on the course.
And also WHY would she even think to ask a parent this?? Parents are hardly freinds that you can ask such favours (not that im insinuating freinds would)
Im sure the parents claim tax credits so that would be a huge resounding NO
Sassyminder, if by title you are a minder please please dont take any tips from this colleague

This whole situation is obviously complete twaddle, asking parents to declare less hours would mean they would get less money than they actually need. The op is clearly a dim-wit for thinking the situation warranted a thread.