Fuel allowances

[natie26]

Hi,

I am a newly registered childminder and I am trying to work out if you are able to claim back fuel allowances from the parent?

I know as a nanny you can claim 45 pence per mile back under your expenses, is this the same when you are a childminder?

Many thanks

Also what other expenses are you able to claim back from the parents?

No, you can offset it against tax at 40p per mile, which I personally think is way too low these days.

You need to have a look at Childminders: Information about Tax and National Insurance 2012/13 provided by HMRC Business & Education Support Team.

One of the allowable expenses is: trips and outings including fares, but exclude any cost relating to your own children.

For fuel expenses it says:
If you use your car in your childminding business, you can calculate your motor expenses on either a fixed rate per business mile basis or an actual cost basis.
Whichever method you use, you must you must keep a log of your business trips showing:
 date of travel
 destination
 mileage covered
 purpose of the journey.

Authorised mileage rate method
If the business is not VAT registered, childminders can use the authorised
mileage rates as a basis for their claims.
From 6 April 2012
Car or van: Rate for the first 10,000 miles 45p per mile
Rate after 10,000 miles 25p per mile
If you claim mileage allowance, no other motoring expenses or capital
allowances are claimed on the vehicle.

Read the guide for further information about motoring expenses.

You don't claim things from the parents. You claim them against your business tax, as you pay tax on your profit.

"Your taxable profit is your income from childminding (turnover), less allowable
business expenses and capital allowances for your equipment."

If you claimed the mileage allowance, then it is a business expense and so is deducted from your turnover, thus reducing your taxable profit.

From a parent's POV, you charge enough to cover your expenses, rather than 'claiming things back from the parents'. I've used several CMs over a number of years, and never paid more than the hourly rate they charge, which is enough to cover what they are having to pay out, as well as for their time.

I think if you charged mileage (which is unusual for a CM) you would have to register as a taxi/vehicle for hire/or something like that and it would not be worth it. Charge parents an hourly or daily rate and make it clear what is included in this rate - outings, toddler groups, nappies, meals or whatever. Claim your mileage on your end of year tax return so you get some tax reduction.