SE Nannying, what to claim back?

[PixieofCatan]

I am a nanny, employed by two families but also do ad-hoc work which I do SE. I started this in October and am getting my tax return done over the next month. I'll be doing a lot more ad-hoc work from July and up until now I haven't bothered claiming back for anything, but now I'll be doing more I will be using more and spending more to do it but I have no clue what I can/cannot claim back for?

All I've ever been told about it was by a previous family who tried to get me to go SE and they said "Oh yeah it's great, you can claim tax back for haircuts and clothes and things."

Also, do you need to keep receipts or logs of everything? The biggest things are clothes and diesel. Like tomorrow I'll need to buy a swimsuit for work, new trainers and sandals, all for work really as I rarely wear my trainers at other times, so would I be able to claim back for those? And could I claim mileage costs to and from my self employed jobs? A family I do ad-hoc for regularly have just moved so they were 4 miles away before and will now be 20ish miles away so obviously the mileage costs will be going up significantly. Would I need to keep receipts for diesel too?

Can't people doing your tax return help with guidance ?
Mileage possibly- go to Hmrc website as there is guidance on what you can claim as there is a set rate.

Clothes and hair - no claim.
At crap family told you-as nanny employer who pays tax , the widespread thievingfraud of nanny employers who claim people are se pisses me off.

www.taxrelief4escorts.co.uk/tax-basics/income-expenses/ It's a totally different business, the nature of which is clear from the website name, but tax advice for se is sound.

Also I would be wary of you are actually se by family you were previously employed by as ad hoc can be a lot of things.
It is possible ( but less usual) to be se as nanny ( Eg if do maternity work or emergency cover) but I would want to confirm that with Hmrc. If you aren't se, the first obligation to pay etc will be with employers but with Hmrc focussing more on everyone's returns you could be penalised for filing as se when you aren't.

So my advice is chat to your tax return people and have a good look at Hmrc on nannying and self employed status plus what you can claim ( they used to have guidance booklets on self assessment bit(.

Useful site old lady even if business somewhat different .

No for clothes and shoes etc. And no for travel between work and home, however you can claim for travel between work and work. I was audited by the HRMC and this is the information they gave me during the process. Best bet is to look at above link and even consider an accountant for first couple of years.

You could claim for a percentage of your phone costs if it's used for work purposes.

Are you doing Cash Based Accounting - so putting things through your accounts when you get paid, when you spend money? That has been available since 2013/14 tax year and is probably the easiest way to do things.

I am a nanny, employed by two families but also do ad-hoc work which I do SE. I started this in October and am getting my tax return done over the next month.

So you are doing your Self Assessment return for your accounts October to 5th April 2014 I guess. Then starting a new tax year 6th April 2014-5th April 2015.

There will not be much in terms of things you can claim but you should be able to put down as expenses in your accounts:

Advertising

Stationary (such as buying the accounts book, a bit of paper for producing invoices, small notebook for use as mileage log).

Accounting software or cost of an accountant

Mileage driven with children. You may be able to claim mileage from your home to the child's home and back but I am not sure about that.

Toys and equipment used only for the business.

Parking costs such as on outings (if you are paying it, not the parents)

Admission costs for outings (but wouldn't the parents be paying that?)

I would avoid claiming for anything that could be considered is for personal use or use in an employed job. It needs to be business expenses, so things that are only needed for the business.

"Oh yeah it's great, you can claim tax back for haircuts and clothes and things." hmm

No, I would not attempt to claim that sort of thing.

If you want to go around with a large logo on your t-shirt, then maybe that t-shirt and logo printing are claimable... but non-logoed stuff is unlikely to be claimable in my view.

Also, do you need to keep receipts or logs of everything?
Yes ideally. Certainly keep logs for all mileage done.

The biggest things are clothes and diesel.
Clothes - unlikely to be claimable in my view. Most likely to be considered as a personal item.
Diesel - claim for mileage not for fuel cost. Note down start and end mileage of every business trip, such as taking children out somewhere.

HMRC: Self Employed Expenses
Simplified Expenses for sole traders

And could I claim mileage costs to and from my self employed jobs?
I don't know. Travel with children is claimable but not really sure about the to/from place of work. Personally I wouldn't but factor it in when deciding how much to charge a client for childcare.

mrswishywashy: no for travel between work and home, however you can claim for travel between work and work

So it is only for trips out with the children, not for travel to clients property.

mrswishywashy did they say anything about going to clients property for initial meeting, was the mileage for that claimable as that is during the advertising for work stage?

The test is whether the expenditure is wholly and exclusively for business purposes. When a cost can be apportioned it is ok to divide it between personal and business use such as fuel costs or printer cartridges assuming it is genuinely used for those purposes.

Beware! Haircuts, clothing (unless workman safety equipment etc) is NOT allowable. Neither is travel between home and the normal place of business. If you take the kids between their place and the park, that is ok. Look on the HMRC website and if in doubt then ask.

An itinerant trader can claim travel ie a workman who goes from home to a different place everyday.

Food costs when working is another no no. If you bought food for the kids on a trip and didn't ask the parents for it back, that would be an allowable expense.

Yes do keep receipts and stick everything in a spreadsheet once a week or so, together with the date and purpose.

I should state that I use public transport so maybe that's where differences are between travel costs claims although I don't see why they would.

Interview travel costs I claim for and was fine with HRMC.
Between work and home I don't claim for. Going between consultations I do claim for. I don't have office space in my house however I expect some claim for costs between work and home by stating that home is also where work takes place? Being audited was scary and I think best for each individual to check with HRMC or knowledgable accountant to check facts.

And I was told a definite no to clothing even with an emblem it would only be specific clothing such as a formula one driver uniform that can be claimed.

Annoying thing is I know so many that claim for clothing and travel between work and home but I'm not will to take a step wrong.

gig I haven't met them yet, my meeting with them is in a couple of weeks.

I know, I insisted that I wouldn't work for them without being employed by them and they went with it. Funnily enough had I been able to claim for clothes they would have been the family I'd really needed it for as there was a lot of cooking from scratch, making stocks and things and I was having to buy new shirts constantly because they'd get fat and oil on regularly!
It is purely ad hoc work, occasional babysitting, rare days of work, I do it for a few families, I've spoken to my local HMRC office about it and they've agreed with me on that one. I am fully employed by my two families at the moment though.

Oldlady I will check that out :)

mrswishy That's a pita.

nannynick Thank you! Helpful list :) And I had no clue about cash based accounting but that would help so much, I may sign up for that. I do keep records on my PC but when I was working 6/7 days a week before Christmas for 7 or so families the records just have X amount from various families. This has gotten better this year purely because I've been working 6 days for two employed jobs!

Thank you, you've all been really helpful!

Last year I claimed for my first aid which was due and my nanny insurance

Yes, along with Juney you can claim for any education costs eg first aid, public liability insurance and any books relating to childcare. I'd get in the habit of putting a third of your earnings from self employed work aside. This is a little more than needed but it means at end of the tax year you have a extra spend money.

mrs I actually divide it at the moment into three separate accounts. 20% into an account labelled "tax" (for tax and NI), 20% or more into one labelled "SE Childcare" and whatever is left into my main account. I treat it as additional earnings rather than earnings I need to survive so tend to throw a bit into my childcare account to cover courses, accountants and things :) A friend of mine if self employed doing something entirely different but uses a similar system and I copied her! It seems to work though!

Pixie - I'm glad you have a system so many people going self employed forget they have tax to pay and struggle at the end of the tax year to pay the tax.

I must admit that the NI bill shocked me as I didn't think that I had to pay it as a SE person as I was paying it through my employment! However I have a lot set aside that it's covered well enough!

As you have employed work as well isn't your SE income less than 5000 (look up the exact figure) and thus you can claim exemption from class2 NI?

If you have employed nanny job(s) then I would doubt claiming for all of First Aid training, nanny insurance would be permitted as a lot of it would be for your employed work. Maybe a percentage could be claimed. Those of you who have claimed full cost of First Aid were you only SE over that time?

The exception form is CF10 and I think the current one will ask about 2014/15 tax year, so earnings from 6th April 2014. The expected NET earnings from self-employment needs to be below £5,885. Self Employed National Insurance Rates
There is room on the form to put gross earnings from two employments and if you have more than that then you can use additional space on the form.

Out of interest, for those of you who have already done your SA tax form for 2013/14 tax year, when are you planning to pay the actual money? I don't think it has to be paid until end of January 2015, are you the sort of person to pay it quickly, or hold off until near the deadline?

I was told I could claim for travel from Home to work and obv any miles I do during work - tho I do work for many diff families as a temp/emergancy nanny

Last year I was good and did 2012/2013 in April 2013 and paid it in may

Havnt done 13/14 yet. Been way on holiday and brown envelope has just been opened ...... Will prob pay (depending how much it is) within the next month or so

Hate doing it jan as obv just had Xmas

And yes I claim for first aid DBS nanny insurance - as well as £2 per week for office use at home - for doing paperwork - read that somewhere

Yes only been se when claimed so claim for all of it

I didn't think about that, yes I do use my qualifications and things for my employed work too obviously so will have to find out what percentage that is. I will also ask my accountant about the NI contributions. I should be seeing them in June.

I intend to pay off my tax bill and whatnot ASAP just to get it done tbh. I'm the type of person who'll put things off and forget, and I don't want that fine!

forgot to say about ni, i pay £12ish a month via dd

I pay mine in Jan. I do all paperwork in April but don't submit it until June as heard that putting it in too early can flag you with HRMC. Doing everything I can not to draw attention to myself since been audited was scary.

Blondes it's silly that there doesn't seem to be any clear info on travel between work and home. Maybe it's a yes for you as you class your home as an office?

Will see if can find the link saying can charge £2 per week for office space/paperwork. Know it's only £104 but all an expense

I don't claim for clothes but dp does - owns property maintenance company and has logo shirts and heavy steel capped/army boots - but obv only wears these for work

Never thought paying early would 'flag' - I'm just organised - plus then once I've paid tax from tax fund - the leftover I can spend :)

Dh drove me insane and was often late getting yearly accounts in and regularly got fined £100