CM CLUB:What part of your income...

[StrawberryMoon]

do you put to one side for your tax bill at end of year?

ill be getting about £200 and was thinking of 10% in high interest account?..would this cover? or would i need to put more away?

I have not been doing this long either and had a look at this for help \link{http://www.hmrc.gov.uk/rates/it.htm}. I thought 22% to be on safe side? Any experienced CMs advice gratefully received!

sorry link not right cming not only thing I am new too!

Is that £200 a week, and do you have any other taxable income?

inland rev personal allowances guide .Hurray can follow instuctions after all!!

yes £200 per week and no other money coming in (for me, just dp)...
dp said 22% too???

Well the tax bill for an income of £10,400 per year would be £922, so keeping 10% for tax is about right. Be aware though that if the amount increaes, then you should put aside 22% of the increase. Your first £5,035 is tax free, the next £2,150 is taxed at 10%, and the rest at 22% (until you hit the 40% band).

Strawberry when you work out your actual taxable income I'll be surprised if you pay any tax. You take the first 10% for wear and tear.
You can remove 33% of your heating and lighting bill
10% water rates bill
10% council tax
All direct expenses such as food and equipment
NCMA subs
40p (something like that) for each mile you use your car related to c/m. Plus if you file your accounts online in april 07 for 06/07 then you will have till 30th Jan 08 to pay what you owe.
Personally I would recommend NCMA's account book as that lays out everything you can do HTH

you could do what i do strawb.............spend spend spend like theres no tomorrow then when tax bill comes in totally sh!t myself and regret all the spending!!
wouldnt reccomend doing it that way tho!!!!!

ladymuck
i earned 18k last tax year and paid £700 in tax as we childminders have lots of extras to claim such as wear and tear, heating/lighting, council tax, toys etc etc

wow thanks for the help girls...think ill stick with the 10% in high interest then...am i able to claim the max back as i have 2 mindee at min one 28 hrs a week the other around 38..thought you could only claim max amount if working 40 hours???

TBH for 38hrs i'd claim the lot. Do you only have the 28hr mindee when you have the 38hr mindee?

think you can strawberry
i work 59 hrs per week so i'm on max

strawberrymoon, i used to childmind and when i first set up a woman from the tax/self employment dept came out to see me and it was really useful. and she said as a new childminder she'd be shocked if i didn't make sure my tax bill was zero or less (owed for next year) as would have lots of outgoings to set up. And she was from the tax side!

When calculating your working hours don't forget to include half hour or so per day for the preparation, cleaning, shopping, tidying up, paper-work etc related to the childminding.

i too had an lady from the inland rev come to my house to help me fill out my tax form she was lovely came every year for 3 yrs
if you phone inland rev up in april somebody will come out to you

thanks again!..will ring tues when only have two(inc dd)..yes i have both mindees at same time so a 28hr and 38 hr at same time(only one here longer obv)