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CM CLUB - Oh dear, what shall I do??? Tax Return - BIG problem! :-(
looneytune · 24/01/2007 09:51
I am soooooo embarrassed about this but I really need some advice. I had all my receipts for childminding expenses and everything in a wallet with workings out written down and everything. As the tax return is due in a week today, I went to work on it a while back and couldn't find the receipts etc. Went into panic mode and since then, have spent each day searching places where the wallet may be (should be in my accounts tray!!!) Anyway, I'm now feeling sick with worry about it. I've not managed to find them and without them I can't do my tax return! All I can think is they've got lost in the move (moved house recently) but what on earth am I going to do????
Anyone else not got their tax return in on time for any reason?
ayla99 · 24/01/2007 10:27
I lost some of my receipts one year - I went through all my paper records (cheque stubs/credit card & bank statements) and put these in my file. Went online to paypal/amazon/ebay etc & printed out copies of orders. Didn't check with IR if this info is okay instead of receipt, just figured this was my only option & if I got a higher tax bill cos I'd missed a purchase it was my own fault.
Registered Childminders don't need to keep receipts for purchases under £10 so you can still estimate numerous costs (maybe look at what your expenses were this time last year, up it if you've got more mindies now). Will be time consuming though, so probably worth a call to IR if you're not going to make the deadline.
jura · 24/01/2007 10:31
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looneytune · 24/01/2007 10:42
Right, phoned them up and she was lovely. Told me to put estimates down and just tick the box saying they are not confirmed figures and explain why. She said if I don't think I've earnt enough to pay tax then to make sure the estimated figures reflect that and then when I get proper figures, just let them know the amendments.
I burst into tears with relief and could hardly say goodbye to her, felt like a right idiot! So, I'm going to estimate as best I can. Can't use previous years as although I've been minding for over 1½ years, this is my first years submission.
Thanks for the support!
jura · 24/01/2007 14:59
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looneytune · 27/01/2007 14:11
Had written on each receipt how much was for childminding and had written most of those figures on the piece of paper that was with them. Lots of work done but where is it all????? Dh is having ds for the whole day tomorrow so I can work on it. Can't believe this has happened but will just try my best to work some figures out somehow.
I know most of what we can claim but can anyone remind me how much you can earn before you pay tax?
looneytune · 27/01/2007 17:06
Right, I've just done the quickest little calculation to give me an idea and it looks as though in that tax year:
Received Payments = £5748.50
Deduct Electric, Gas, Council Tax etc = £279.24
This leaves me with £5469.26. I think I can very safely say I have spent over £400 on food shopping, presents, arts and crafts, set up costs etc.
Sooooooooo, does this sound like my tax bill will be zero?? Please say yes!
Now I need to go on the website and see what figures they need from me in order for me to prove these details.
Wish me luck!
tallulah · 27/01/2007 18:42
tax allowance for 2005-06 was £4895. (£5035 is the rate for 2006-07).
You can't claim for council tax because it isn't a business expense. Same with water rates. Metered water can be claimed plus a business proportion of electric and gas and telephone calls.
Presumably this "food shopping" is only for the mindees and not you or your family?
You'll be OK on your estimated figs but once you put in the proper ones be aware that HMRC does not like round figures for expenses (like £400) because it generally shows someone hasn't kept proper records and has just plucked the figure out of the air. Also if you under-estimate and then find you have to pay some/ more you will be charged interest on the difference because the tax is due on 31 January, no ifs or buts.
looneytune · 27/01/2007 18:53
Thanks for confirming the amount, I didn't realise it changed each year.
I CAN claim for council tax, water, electric, gas etc and I kno0w exactly how much so I'm sorted there.
Yes, food shopping was just mindees. I wasn't intending at all to put £400. My point was that was roughly the different between where I'd got to figure-wise and how much you're allowed before paying tax. That however was on Katymac's annual figure so need to look again. I will work out the shopping costs the best I can as advised by the person I called.
I will be putting estimated figures not so in my favour so that when I have proper figures, if anything I spent more on shopping etc. Tbh, I don't think the interest will matter on this tax year as if I haven't earnt enough to pay tax then I shouldn't have any interest anyway?
Oh yeah, I mustn't forget mileage too!
Thanks for your help
Katymac · 27/01/2007 18:56
10% for council tax & water rates
33% for gas & electric
Tallulah - these are preagreed rates for childminders on a special scheme
Plus 10% of your turnover
Sorry I wasn't reading properly - I am getting ready to complete 06-07's accounts so I gave you the figure I was working with
SO Turnover @ £5748.50
If you have used the correct proportions for CT, WR & E £279.24
So you should be OK
But if you find them do proper accounts as any loss can be carreid forward to the next year - when did you start minding?
looneytune · 27/01/2007 19:00
Cheers Katymac, that looks like I didn't earn enough to pay tax even before all my spending! I hadn't deducted the wear and tear!!! Wish they'd deduct for wear and tear to clothes - I've got through 5 pairs of jeans since childminding as keep getting holes in one of the knees, never had before!!! Even my new GAP jeans from November have just gone
I've been childminding just over 1½ years now.
Can the loss REALLY be carried over??? How does that work???!!
Judy1234 · 27/01/2007 19:01
Yes, you declare the loss and then take that off your profits in the next year. So don't forget it when you do your tax return for the next year which you can do any time after 6th April 2007 by the way. No need to wait until much later. I always like to get mine done in April then relax!
looneytune · 27/01/2007 19:04
Thanks for that! Yes, I definitely won't be leaving it so late again. I never intended too but big things were happening last year including moving house in November and I thought I had plenty of time until the receipts went AWOL after the move.
I must find those receipts as I spent a fortune on stuff in the first year which definitely makes me at a loss - need to prove it!!
Thanks for your help guys!
By the way, how easy is it to do the assessment online? I've registered and got my pin etc, just haven't dared look yet (got tomorrow put aside for it - dh is taking ds out for the day!)
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