Childminders Club - how much of your earnings are you putting back?

[lunavix]

Either a figure or a proportion....

When I started I spent tons... I had no toys or anything cos ds was 2 months old, and he's my only lo so far. I had to buy absolutely everything, but I limited myself with toys as I thought I'd be better waiting till I get different ages.

I've been spending bits here and there, although I don't know how much as I'm not update with my book keeping (oops ) but whenever I mention buying stuff for the business, dh says 'buy it out of your CM account' which doesn't have anything in it! When I get paid I keep the tax and NI in it and the rest is what dh and I live off and pays the bills (am I the only one that does that?) But he keeps going on about tax deductable stuff (?) and I keep saying I can't spend what's in there!

I know in a way it's proportionate to what you already had (for reference, I can just about keep 3 or 4 under 5s amused, but struggle with the older ones!) and it's also proportionate to income... what do you do?

I havent started yet so no real help but it was my understanding that you still claim for tax relief on all toys, any home repairs, garden repairs etc (the list is endless. i have a list if you want me to list things.) you just need to keep a record or receipts if value over £10. It could mean that you actually end up paying very very little tax at all. Because with all the stuff you are buying your business will be making a loss or negligible income so that money left in your bank account wont need to go to the tax man.

I do know that but I'm not comfortable spending any of it till I get the bill.

I'm just wondering what people spend on a more general basis...

sorry misinterpreted what you meant with you writing tax deductable stuff?

That's dh! He goes on about it and I know we get the money back if there's any, but he's got plans for that too!

Don't ask me .....
1st yr 10K turnover 800 loss
2nd yr 20K turnover 6K profit (Tax was about £130)
3rd yr (anticipated) 37K (only put accounts in as far as Jan and anticiapetd tax is about £670)

So I obviously spend too much

Katy - true but cars and conservatories and stuff figure in your accounts don't they?

No cars only mileage

Conservatories can't be offset against tax (but some furnishings can)

I was really making the point that I'm crap at budgeting

I keep my NI and a percentage of the money left in a seperate account for my tax.

I always forget to put stuff through my books though and it ends up coming out of my pocket.

I'd say I spend about 30% of my earnings I'm still quite new so I still have alot of stuff to buy (I only earn £100 a week)

Try phoning your local tax office, they will send out a tax advisor to come and help you out. They know all about what can be tax deductable and what can't.

Hi
I had the tax office come round to me at home, it was free and really helpful. They were very friendly. They left some leaflets and paperwork which included a ready reckoner for what to put aside for tax and Class 4 NIC payable:

If you earn(profit):

£75/w put aside 0
£100/w 2
£125/w 6
150/w 12
175/w 20
200/w 27
225/w 35
250/w 42
275/w 50
300/w 57

You need to register as self employed within 3 months of starting up.
I do my hubbys tax return online and thats how I'll do mine too. I try to do my books every week so I don't get worried by it all mounting up.
Hope that helps a bit
Frankie

is that what to put aside a week or month?

Hi
Sorry, thats to put aside each week.
Frankie