How much do you earn and how much do you end up declaring?????

[lunavix]

I've been trying to work out money after splitting with dh and I'm panicking about meeting bills.

I declared my income two years ago as not much over the threshold (as after expenses it wasn't, although what I actually brought in was double, it was the year I started up and I'd had to buy a LOT. I hadn't exagerated either lol)

So for the last year I declared a bit more... I still seemed to be earning the same but figured less in expenses. I've sat down and calculated what I transfer into our bank account each week as 'earnings' eg leaving behind NI and tax... and it's quite a bit am I going to have a nasty surprise when it comes to taxes? It always gets sucked up in bills and we never have any money...granted it only just covers my half the bills plus food but never mind...

I haven't ever had a big tax bill, only had to pay £18 once and thats it in 3 years. Which I think shows I have very low takings and spend too much on my high expenses!

I think some cm'ers on here put say 10% away each month towards tax bill, then if they don't need it blow it on new play equipment or whatever else they fancy!

My tax bill is £7000 this year, last year it was £6600. If you earn it you have to pay for it!

I know a lot of childminders who gross in excess of £25K a year, it is not difficult with 3 full timers at £850 each a month and some after schoolers. The husband and wife couples I know are doing really well and they are always full.

I pay my NI by direct debit every quarter so it is automatically done and don't have to worry about it.

I really must do this years tax - I am estimating a profit of a bout £6K so very small tax maybe £150-£200??

I pay my NI each month too

most I have paid is about 1400.00 and I earn well, make sure you declare EVERYTHING that is expenses, you would be surprissed what you can claim for.

that's a big difference..alibubbles apying 7k and nyou others practically nothing

obviously a controversial area or she is very efficient and popular or....not everyone declares their income

My biggest bill was £1215 and that was 2005-2006. This year I'm expecting about £70. You have to be as honest as you possibly can be. The main thing to remember is that the Inland revenue receive details of fee's paid via council run schemes - ie Teen parents care to learn, so they have a rough idea of what you will be submitting. If your parents are in receipt of WFTC's, then the IR also know about those! If you have any parents who do not claim any benefits or relief, then they are the top up figures on top of what the IR already know of. These too must be declared.

Sally

shoshable how can you earn well and not pay much tax?

I declare everything to IR, even tho most pay by cash, it is not worth not, the year I paid tax I earned 2400.00, but I do but alot for the children, we have lots of garden toys including a 10ft Trampoline and a huge climbing frame, I would rather spend it on the children than give it to the taxman.

And I have to drive to school run, so that is at least twice a day that i do 9 miles, and the sept term I have to go back at 12.oo for the reception child and have done that for the last two years as children have gone to school.

You really have to make sure you claim for everything, there is on here a list we all worked out of what to claim for.

so you operate as a charity and community resource rather than needing an income?

that is very admirable and altruistic...

Zip I also feed all my children and dont charge parents for food, as if you do you then cant put it against your tax, we go out three times a wek, swimming, soft play and music, again I pay for all outings and put it on my expenses.

They only thing my parents provide is baby milk.

Also the year I earned a Huge amount (alot of over 8's for the holidays. never again!!!!) I bought some waterproof trousers and jackets for my under 55's as parents always forget them and it meant we couldnt go out, things like that. Anything better than giving it to the taxman.

No def not a charity I earn a decent income, and give a good service with a lot of resources for my mindees what is wrong with that.

but what do you live on? you rely on your partners wages? ie if childminding doesn't pay you any earnings

I earn just under the tax limit, but you have to remember we get 40p per mile for petrol, so I get more for the petrol than it costs, I can claim for my cleaner, my car to be valet, things that make up my earnings to alot more than that.

I can claim for my carpet cleaner, my first dishwasher, as the taxman was happy with the reason I claimed, enviromental health, sugessted I had one, (there is usually only me herer DH is away alot so why would I want one)

I can claim a tenth of my heating, rent, lighting, water council tax,

ten percent of all I earn is claimed as wear and tear, I can claim 10 percent of sky tv, tv license, I claim for all the paper and ink for office PC and half the internet.

The hidden allowences make the difference.

interesting...do uou own your own house..the potential downside being that you would have to pay capital gains tax on a proportion of the eventual sale

meaning i thought they were clamping down on claiming against tax by clawing back re household expenses like utilities

Not for Childminder Zip we are allowed the expenses, and although we own two flats we dont live in them we live in Army Quarters.

We dont pay capital gains either because although can claim a portion of rent we cant of mortgage.

Not unless you have a room used soley for childminding

I used to work for the IR so I put every penny I earn through the books - They would be down on me like a tonne of bricks if I tried to cheat

We have very generous allowances for Tax plus we don't have any childcare costs of our own

Or if you dont have children of your home at home so you can claim fot all the childrens touys

I pay so little tax I barely make it over the threshold, I also would rather have high expenses than a high tax bill. It means I have lots of lovely resources for the kids, and I too am very thorough making sure I put everything on expenses that is allowable. Childminders have lots of things we can put on expenses that other professions cannot so I guess in that way we are lucky.

well what is alibubbles doing wrong then?

I did get the impression that it was a very good deal judging by minders round here...even better if you rent your property then

I know I am not doing anything wrong, - I am amazed at how little tax some of you pay! I have paid tax since I started minding 21 years ago.

I am doing everything by the book, I had £10k of expenses last year, roughly a third of my income, which is the rule of thumb expected percentage.

I do pay higher rate tax. and I don't complain about it , childminding paid my childrens school fees for 10 years.

I can only think that some of you have a very small gross income, I do live in an expensive are where childminders are in demand. Most charge a minimum of £5 an hour and I support new minders who are charging £6, one charges £7!

Some people really do n t want to use a nursery for their baby, so are prepared to pay the high rate. A nursery here is £58.75 a day.

ali, average cost here is 3.25 a hour so balot of difference.

I only really worked p/t last year - so if I did more I'd have earnt more (& paid less wages) - but it was nice having the time off

Lunavix, sorry to hear about your split Will send you an email. As for tax, I've only done one year so far and not needed to pay tax but not sure about this year, I'm not really able to help with that one apart from claim everything you can!!!