CM Club - remind me how much tax for 07/08

[looneytune]

Does anyone know what the amount is we knock of the net profit before calculating it plus what the rate is? I'm doing 07/08.

TIA

Personal allowance for 07/08 is £5,225.

then you pay 10% on the next £2,230
and the rest is taxed at 22%

then you have to pay class 4 NI.

I hope thats correct.

have a look online, looney, the hmrc website will help. i think mumlove is spot on, though!

Thanks guys. I'm trying to decide what to do for the best. I've got my mortgage fixed rate up in November and the deal we have wasn't the best because I'd only just started childminding. Now I've got accounts to show so I guess I want to have a better net profit on paper but that would mean like a £1500-£2000 tax bill to pay. Decisions, decisions!!

Thanks for your help

i am going to have a similar dilemma when we eventually are able to buy our own house!

less tax payable = lower nett income = less mortage

more tax = better net = higher mortgage

Don't forget to factor in your Tax Credits to the conundrum

Katy - this was another thing I was thinking about earlier as I'd probably end up owing them if I told them it was higher net profit . I think I'll just stick with doing it the way I always have and hope we can still get a better deal when it comes to November.

katym, how do i do that? you mean take into account tax credits for mortage approval purposes?

No - if you 'increase' your income for your mortgage you will reduce the amount of tax credits you receive

thanks for the info, KM.

Looneytune, have you managed to get your return sorted?

Last year I hand delivered mine on 31 Jan!

Your profit is the amount before you knock off your personal allowance. The personal allowance bit is just between you and the tax man - the bank manager doesn't care whether you just get personal allowance, or whether you get extra allowances (as some people do). Just give the bank manager the figure which is your income less expenses and leave the rest for the tax man.

I was talking such a load of rubbish there ... sorry. It all came clear to me after a bottle of wine last night! Of course the bank manager wants the figure after tax, because that's your 'spending' money isn't it! Sorry again.

No4 - doing now!!!

HELP, HELP, HELP!!! Is it true that you pay 22% after 1st £2230 (once the allowance deducted)? If so, I need to find some way of bringing my bill down as everything is logged and it's still looking like I'll have to pay £1283.20