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Childcare

CM CLUB:Advice please, from CM's who are in the know 8-)

18 replies

StrawberrySnowflakes · 05/03/2007 19:56

as you know i started cm'ing in November, i have earnt just over £3500 but have easilly spent that much in equiptment to start up, previously received incapacity benefit from last financial year up to november meaning i got about £3000 for that year, so about £6500 in total up to now(remembering i have spent over £3000 setting up)
would anyone like to hazard a guess as to how much tax i am likely to pay? and will my tax bill be due april to be paid then, or april to be paid september or something?????

many TIA

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StrawberrySnowflakes · 05/03/2007 20:20

oh pleeeease..you 'know' your in the 'know'!

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StrawberrySnowflakes · 06/03/2007 08:14

anyone??

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saltire · 06/03/2007 08:21

Is the personal limit not something like £4,500? Not sure to be honest!

smeeinit · 06/03/2007 08:21

sorry cant help you strawbs but keeping bumped for you
katymac helped me loads with my tax so im hoping she will be along soon for you!

needtogetoffchest · 06/03/2007 09:46

It's deffo over $4k you have to earn before paying tax, can't remember exact figure, Katymac told me but should be on revenue website.

Must dash

ayla99 · 06/03/2007 10:28

www.hmrc.gov.uk/rates/it.htm

www.hmrc.gov.uk/sa/keydates/keydates.htm#comp6apr03

So your profit needed to be over 5035 to get a tax bill! If you did have to pay you would have until 31 Jan 08 to pay for the tax year ending Mar 07. You have to submit your paper return by Sept 07 but if you do it online you have until 31 Jan (but as you have to pay your bill by 31 Jan its sensible to do it earlier just to be sure!)

StrawberrySnowflakes · 06/03/2007 12:23

thanks everyone..sooo...if my limit to earn is £5035 and i earn say £7000 for arguments sake?, i will need to pay tax on almost £2000, then what to i do about expenses and setting up moeny i have spent?

arrgh, this is coming across all mixed up...do i take my expenses off the £2000?
and if i pay for example £6.50 to window cleaner, do i claim back 100% or a percentage?..same with soft play etc, do i claim back full £4.80 or a percentage of it?
i know bills you can only claim a percentage, but what about things you buy, toys, materials, furniture for children etc?

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looneytune · 06/03/2007 12:37

Things that are purely for the kids you claim whole lot back.n Can't help with window cleaner as not got one but would imagine could only be percentage?

BuffysMum · 06/03/2007 12:52

You take allowable expenses off your gross (total income) and then you taxed on your net income (what is left after deducting allowable expenses).

From what you'e said £6.5k less £3k in costs that are probably allowable net income £3.5k you shouldn't have to pay any tax.

HTH

StrawberrySnowflakes · 06/03/2007 13:00

it does Buffysmum thankyou, am waiting for cis business adviser to ring me back to clarify and am trying to sort out all my reciepts, most are all logged byt recent ones are getting done now, but i dont have receipts for things like treats from shops on way home from school etc or credit for my phone etc..so will have to check it.
ive been putting 10% of each wage away eery week since i started in november and as i have a few huindred there now (and we could do with it!), i am trying to find out how much if any i would have to pay the tax man!

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BuffysMum · 06/03/2007 13:04

If my any chance you do need to pay tax then you can always go out and buy that piece of equipment you need instead - ok you still have to spend the money but at least you have something useful in it's place. New digital camera, pushchair, highchair, car seat etc

StrawberrySnowflakes · 06/03/2007 13:08

so, let me get this straight in my ever so thick skull..if i have have earned £7000, i take off £3000 for materials/toys/getting started stuff, that leaves £4000.so does that mean i am under the threashold of which i would need to pay ANY tax????

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BuffysMum · 06/03/2007 13:12

Yes SS you are correct I think some one else posted that the current tax free earnings limit is actually £5,035 so you should not have to pay any tax for that year

StrawberrySnowflakes · 06/03/2007 14:52

just spoke to business guy and he said that he would come round in april when i get my bill and work through it with me making sure i claim for everything i possibly can..so what i need to know now is, going by the figures ive listed, will i need to use the £300 odd quid for tax or can i use it to buy much needed stuff now(not work related-pay bills)?

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alison222 · 06/03/2007 18:48

Hi Strawberry snowflake,

You need to count all your income in the financial year ( I can't remember if incapacity benefit would count as taxable incomke - the Inland revenue's website would tell you though.

Then subtract all your expenses - ie equipment, food ,petrol, nappies,cost of outings etc etc (there is a list somewhere on mumsnet if you do a search)

Take off 10% of your childminding income for wear and tear. Don't forget you can take off a percentage of your electricity,gas and water etc depending on how many hours a week you work - details in the NCMA book if you are a memeber - if not say and somone can look it up for you.

If once you have subtracted this liitle lot your total "profit" comes to less than 5035 then no you will not have any tax to pay this year at all.

HTH

StrawberrySnowflakes · 06/03/2007 19:44

alison222, wow, so clear and simple! you know me well! thankyou for clearing my fog!..everyone has been very very helpful, but i still couldnt get if you take expenses off total or difference..now i know..thankyou all SO much

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nannynick · 06/03/2007 20:01

So that we can match up useful threads later, the associated thread containing the percentage figures for heat/light, council tax/rent which can be deducted, along with details of other things that can be deducted is here

StrawberrySnowflakes · 07/03/2007 10:08

thanks Nick

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