Do you claim for Mot's and car insurance?

[juliaemma]

Sorry to keep asking questions about what i can claim or not...im just starting to fill in the sheets on accounts and keeping track of expendiures and just wondered if car bits like MOT and services and insurance can be claimed back too?

In fact...does anyone have a whole sheet of bits to claim back for,or is there anywhere to get the info??? Thank you everyone!!!

Do you claim mileage? if so you can't claim any other car expenses
If not you can but it's quite complex.....

yes i was going to keep track of milage and claim that back...so i cant claim mot back then??

I got a list of stuff I could claim from the small business advisor from the Inland Revenue who came to see me.

Just call and make an appointment or ask them to send something.

As for car, just mileage if taking that route.

By the way, I started working on 4th July - any idea when I need to do my first claim? Will something come through the post?

Helly - make sure the small business advisor is knowledgeable about registered childminders specifically. Some of them, although good at their jobs, are not always aware of certain differences between us and other small businesses. And yes, it was a small business advisor who told me this!

Re. car expenses - it's usually much much easier to do a mileage claim.

I wish I could get a Business Advisor to come to see me; I have rung the Inland Revenue so many times requesting a call from a Business Advisor and have had absolutely no luck at all. I have tried to find out if they run work shops locally but I was told this depends on the need! I was also told that they do not do visits any longer maybe just in my area . I have recently emailed an Accountant who does only childminding accounts with a view to using him for this year. Has anyone else done this before?

The only minders I know who have had accountants have been those who are related to one, or those who have additional income from other sources so have a much higher income. I guess minders who have permanent assistants might too (katymac??)

You really don't have to keep heavy-duty accounts - just a monthly list of outgoings/income is all you need. Hang onto receipts, obviously.

I've said it before that the IR checked my accounts several years ago (an apparent "spot check") and the guy wasn't looking for gross fraud. I hadn't got receipts for everything (some stuff was 2nd-hand), and it really consisted of 12 sheets of paper, lots of lists on one side, jouneys made/mileage on the back, and receipts stapled to one corner. He said it was much more professional than it needed to be!!

Why do you think you need a business advisor?

Basically TP, I am so confused about what I can and can't claim against Tax for - I know many of you have said it time and time again that anything you purchase that is related to the business. What I don't get about that I really don't know - I am just unsure of what percentages I should be claiming against elec, gas, water, phone, rent, wear and tear etc - maybe it is just me being thick

I am ashamed to admit that I haven't even started jotting a thing down yet (expenditure) (since May 05 [shock} - of course I have my receipts and a record of all monies earnt but just have not done anything with it all yet. I have a terrible aversion to figures for some reason - I must get over that I really must!

OK then ... ready for this ... (information is from NCMA Members Handbook, 2005/2006) ... if you work 40+ hours/week:

Heating and lighting - One third of your bill (33%)
Water rates - One tenth of your bill (10%)
Council tax - One tenth of your bill (10%)
Wear and tear - One tenth of your total earnings (10%)

If you rent your property - One tenth of the total rent (10%)

Reasonable costs of cleaning household items can be allowed as a separate item

Food and drink - whatever you specifically buy. If you make batches of food and use half for your family, only claim half as an expense.

Telephone - any business-related calls on landline or mobile. If half your calls are business, then you can claim half your line rental (if 10%, then 10% of line rental etc.)

Any presents for children (so long as you wouldn't normally buy for that child).

Trips/outings - entrance, food etc. both for mindees and yourself.

NCMA membership, public liability insurance, cost of any courses, toys, equipment, stationery, toiletries (loo rolls, wipes, nappies etc) and so on. There's obviously lots of other sundries!

Hope that's enough information! If it's of any consolation, I tend to do my tax return just days before it's due in. I'm just a lazy cow, basically!

Thanks v much for that TP - have printed it out and put with papers that I intend to make a start on at Weekend

What a lovely fun weekend you'll be having!!! Good luck!

Hi I use the 'Childminders' accountant, & have done for the last 2 years. He is brilliant, his wife is a registered childminder so that is how he knows what we go through! Although he lives in Scotland & I'm in West Sussex I've actually met him briefly at the NCMA conferences! He is really nice & so is his assitant, they're both very knowledgable & have helped me no end, finding out about extra items to claim for & also managing to get me a refund the first year because I had overpaid!. Unfortunately not the case this time, but then my income has gone up rather a lot & makes it a viable long term business for me.

I also use the childminder accountant.He lives near me and you will find his ad in the childminding magazine.He is well worth the money,think it's 60 pounds now.I just send him cashbook and envelope of receipts and he does the hard work.I cannot see me ever doing my own accounts ever again.

Thats nice to know BH & agalch - I know he was highly recommended by childminders on another website so thought I would try him because he is so cheap.

Thanks TP

TP - this lady gave list specially for childminders and then a separate list for me to help my web business but she made it clear these were different

Tan - don't worry, got my certificate in May 05 too and not written stuff down! I still worry even though I know I don't need a really professional set of accounts!

This has all been really helpfull, thanks everyone. Im not sure iwas going to get an accountant, thought doing the self assesment would be quite easy so going to try it myself. Is that £60 for the year to the childminding accountant?

Yes Juliaemma, thats right for the whole year and you do not even need to open your letters from Inland Revenue, just send it to him to deal with - although I am sure I will open mine first! As I understand it, if you pay an extra £20 (for the year) in addition to the £59.00, if the Inland Revenue do decide to do a spot check on you, he will handle everything - that suits me just fine

Does he do it so your tax ends up being preety low? If anyone doenst mind saying...how much does it end up at?

Most minders I know pay very little tax, some pay nothing at all (but probably aren't earning much either!) - but has nothing to do with whether we have an accountant or not!

My turnover last tax year was about 20K - my Tax was about £140 (I do have another job tho' and paid tax on that)

No accountant here