NANNYNICK - or anyone who can help with a tax question (re childminding)

[looneytune]

I THINK you don't pay tax if earnings are less than £4465. What I want to know is how to work out roughly how much tax I'll have to pay on what my earnings are for 2006/07. I've almost finished but do have a few more bit to account for but I'd like to get an idea of how much I'm likely to need.

Anyone able to help?

TIA

Have you offset all your business expenses?

If you go over the LEL then you pay tax of 20% (I think)

If you do your tax return on line it works it out for you.

Hi - will I do

Look here

It says £5225 tax free for 07-08 - I am struggling for 06-07, sorry but I think it was around £5000

I've done most, have some more to do but was having a break and thought it would be good to get an idea of the most it will be. Thanks for that

TM - I did it online and put a dummy figure in a few weeks ago when I hadn't put many expenses on and thought I could just update it with the proper figure, it didn't let me get to that section so I have deleted and will do again - not until I have the FINAL figure though which is why I'm asking as I'm not all finished yet

£5035 for that tax year

Cheers Katy. Pretty sure it's £4465 for 06/07. I've just remembered the approx dummy figure i put in before and that worked out about 15% of the profit. I presume if you go over the allowance of £4465, you pay whatever % of the whole 'profit' figure? I.e. if earnings were £4500 so had to pay tax on it as over the 'allowance', you're tax would be £675 IF it was 15%? Or is it that whatever your earnings are, you are allowed to have £4465 tax free so therefore it would be more like £5.25 on that example?

Sorry, being really thick here but I've NO IDEA as last year was my first tax return and I didn't have to pay anything at all.

Oh thanks Katy, I got this info off the net but must have been wrong. Thanks for confirming the correct allowance

15%?

I got the £4465 off the net but can't remember where - where did you get the £5035? As for 15% - are you confirming or wondering where I got that?

Erm I got 5035 off last years tax return (I got a tax rebate)

I am questioning your 15% there isn't a 15%tax band

Did you have any earnings last year? Where you C/Ming for less than the full year?

It's ok Katy, I found the £5035 too now I just want to know how to work out if it's over that amount.

At the moment my profit is around £6000 but I have more mileage to work out and add on (need to go on google maps etc and work it all out). So I was trying to work out what tax I'd have to pay on £6000 as I know it's going to be less than that iyswim

Email me .........I'm sure you have my email

Oh, the 15% is very approximate as I can't remember the actual figure I entered, just that it was around £12k at the time when I entered as had hardly entered any expenses

Childminded for whole year - I started in 2005. Will email you

OK
6000-5035 = 965 @ 10% = £96.50 plus NI (but I will have to look that up I think it's 10%) so total £193

it's 8% - so it will be a scrap less

dont you pay NI seperatly I do

You pay £2 (or so) a week plus a %age of your profit that just how being S/E works

I didnt realis ethat I just thought we paid the 26.00 a 1/4.

I must admit I wasn't sure about this NI bit either as never seen it online? I'll watch out for it when I complete the form again

Gosh i wish my tax was that low lol..i have 2 jobs though and have just paid my 2nd of my 3rd instalment of £1287..ouch!!

gaby - it's because we have a lot of expenses so makes our earnings nowhere near as good as our actual income.

Looks like you are all sorted now... sorry, not been online today - I've had a busy day!