CM CLUB:How much tax would you pay on..

[PinkChick]

Approx £10-£11'000?

trying to do online, theyve invalidated my password as i hadnt used it and trying to find out how much i can spend out of tax savings on new stuff???

You will get it down a lot before you know it PC

I even claimed for the pet rats, and all their equipment and food.

Well two grown people wouldnt want rats would they

Thanks for that link shoshe

i paid nothing last yr for earning more than that due to expenses etc.

MrsFluff, been doing it a long time, have lots of expenses

I even managed to get myfirst dishwasher on my expenses, as I argued why would We (when DH is away 9 months of the year) have needed one if not for the business

Have you claimed for cleaning carpets? I bought a carpet cleaner and put that on as I have to clean them at least once amonth.

Car Valet? I have it done once a Term and claim for it.

I have a cleaner 3 hours a week and claim that as well.

I was under the impression we could only have carpets and sofas cleaned once a year - well I mean claim for it once a year? Can't recall where I heard that though!

I have an accountant in my family who is going to be bombarded with calls now!!

Argh!, MrsFluffle, that goes straight over my head!..mortgage is £89k we use one room soley for business, but6 rooms (playroom,brakfast room, kitchen, living room, bathroom and frontt bedroom) regulary for business...what would i be able to claim?????

we've just had new carpets fitted in playroom, livingroom and satair and landing, old ones were tatty and becoming dodgy(could have tripped-in when we moved in)..can i claim anything for them?..and what about new kitchen?, obv needed one anyway, but goes without saying i needed safer flooring/no rotting units(flood) and hygenic areas to cook and prep food as well as cook and bake with children?..new oven, fridge freezer, microwave, toaster, kettle..sounds grabby and AM chancing it here..but i DO obv use all these things for the childrena s well????

right, dp gets that but it seems i will prob need to ring them for exact figure and he thinks that if were it says £240, i wouldnt get £240 deducted, but the interest paid on £240??????????Ehhh..will irng them monday, thankyou so much for that!..will search for any other things ive missed now

over my head too lol!

LOl, thought you were dead clever there!

will ring monday with figures and let you know what they say i can then explain it too you once i know what I will get

Goodness me no, I just post a few links here and there and try to look clever

i have a cleaner but i pay cash in hand.can i still claim?

Mine signs a receipt from me, and I just add it to expenses.

but doesnt that make her liable for tax

She dosn't earn enough to pay tax.

ah, mine does, she works in another job 3 days and does my cleaning as a little extra job. heyho

Hi Girls, just rang ILR and that section about claiming a percentage of interest on your morgage payments is NO LONGER VALID..they said it is an old system and even when that was relevant if i had claimed it, i would then be hit for capital gains tax if i sold house..so just to update you all, save anyone else ringing and make sure you dont all claim and get into trouble..shame though!, she said if i go onto ncma website they have examples of what i can claim, although im guessing it will be standard % off utility bills etc..will let you know

pfft they want to update their bloody website then don't they! but am breathing a little sigh of relief though as it looked a bugger to work out!

Just mystified a little now as the CM "bisctuit tin" accountant bloke in Edinburgh has requested my CM friends mortgage details and written in letter that they now CAN claim it and that its a new thing??

, i bet you CAN claim it but they dont want anyone to know..thats the prob isnt it, you just never know what you can do

Can I hijack a little here please? I have read the info that you have all posted (and some other stuff) but my brain just can't get around certain things.

I work as a nanny and some of the work I do is on a self employed basis; I am also in process of registering as CM so that on rare occasions I can look after little ones in mine.

Anyway I don't get this profit V income stuff? How do you calculate it? Also Mrs MrsFluffleHasAWuffle said that the personal tax free allowance is £6350, but I'm sure mine is only £5430 (tax code is 543L)? Does it vary person by person?

Sorry for hijack and good luck with sorting everything out Pinkchick - I'm trying to get my head around this now so I don't get stung by HMRC next year

thanks xx

This years standard tax code of 543L means you get £5430 tax free, last years was 522L meaning you got £5220 tax free.

You basically take the figure of all of your money in (income/turnover) then deduct all of your costs (expenses etc) then what is left is your profit.

You then take you profit and deduct your tax free allowance, then you have to pay tax on anything above that. For this tax year April 08-March 09 you pay 20% tax on anything over your tax allowance, it then goes up to i think 40% but thats only if you earn over something like 37k ish. If it is last years you are calculating though you take off your 5220 tax free, then you pay 10% on a bit then 22% and again 40% if you earn loads, i cant remember the exact amount that you only pay 10% on but it was about 2000.

Spent ages going through all this with my accountant in Jan! and helpfully made notes!

so what IS the tax code then??am confused now???

Sugarandspice I know how the tax system works in terms of %, first £5000 odd (or whatever tax code is) is free, then 20% up to £36/35k then 40% on anything after that.

The bit that I don't understand how profit v income is calculated?

So lets say hypothetically that in one day I was paid £5 by a parent, and during the day I had the mindee I bought them an ice cream costing £1.

so my income is £5
my expenses are £1
and my profit is £4

do I have that right? And then things that are expenses are things like, car seats, buggys, toys etc? I just can't fathom how some CM's pay no tax? Does that mean they are not 'making' any money other than their £5000 odd tax free allowance?

pinkchick I know what my tax code is because I work as a nanny and it's on my payslip. I think only employees have a tax code though ?

But I just had a look here and it says: "(Exceptionally, the personal tax allowance is increasing twice for the 2008/09 tax year. From September 2008, the personal allowance will increase to £6,035 and it will be backdated so that it applies for the whole of the 2008/09 tax year. The tax code for this new personal allowance will be 603L.)"

Also there is a bit on listen to tax minute near the middle that says stuff about tax free allowances have a look here: listentotaxman.com/ I'm guessing it varies person to person depending on age and status etc. I also think that it is increasing twice for 08/09 year because of the 10p tax rate cut that labour introduced earlier in the year - I think upping the tax free allowance is the governments way of trying to make sure people aren't worse of because of the tax cut. But I'm not certain on this! Nannynick will know, fingers crossed he pops by!

Ok we can claim
10% of all turnover (ie every penny we earn) - so you can add that to you Tax free allowance
Plus 10% council tax & water rates - which also adds to the Tax allowance
plus 33% of your fuel costs - which also add to you tax free allowance

So if I turnover £10,000
I have my Tax free allownace £5000 (approx)

Then expenses:
I have 10% of council tax £100
I have 10% of Water Rates £21
I have 10% turnover £1000
I have 33% of Fuel (£150*12)/3 £600

So before I start I have £1721

Then I add in the food costs - I use a set sum per meal

Then I add mileage (40p a mile)

Plus all the other expenses - say £3000

So 10,000-5000=5000

Less expenses (£1721+£3000) so £5000 - £4721 means I pay tax on £279 @ 20% = £55.80 on £10,000 turnover

But I pay NI every week plus NI on £279

Personal allowance is £6035 sorry, I typoed. It was £5435 but they increased it over the hoohar with the 10% tax band being scrapped