Minding own child - tax and expenses queries... help please...

[leeloo1]

I'm trying to get my head round the financial side of childminding (ARRRRGH), but I had a few queries, which I was hoping someone could help me with... I'm not exactly sure of the terminology, but hopefully you'll see what I mean!

1. If you can deduct the cost of resources, from your income then can you also deduct the cost of storage - (shelves and boxes etc bought to store childminding equipment)?

1. If you can deduct a % for heating/lighting/council tax, can you also do this for any of your mortgage?

1. If can deduct the cost of food for mindees, can I also do this for the cost of food for my own LO? I know I'd be feeding him anyway, but technically he is a mindee?!

1. I read somewhere that there is a different tax code if you're looking after your own child whilst childminding (maybe to make up for losing out on claiming childcare tax credits??) but I can't find any reference to what this is... does anyone know what this is/what the implications are?

1. Ok not a tax question, but if I have the mindee sleeping in a travel cot in the living room but let my LO nap in his own cot in the nursery then would I have to have the nursery inspected by Ofsted - as only my baby would ever be in there IYSWIM?

Thanks in advance for any help!

you can deduct anything that you will be using for childminding, for example i bought shelves specially so they have gone through as an expence. morgage is diffrent, not really sure how that works, but you can do it for rent, gas, electric, water. although i'm not too sure about council tax.
i dont know about the food for your own little one, i only deduct food for myself when we go on a trip and i have to buy it.
i'm not sure the answer to 4 hopefully someone will be along soon. and finally imo think it usually best to have the whole house registered, especially if lo are going to follow you in to the room whilst you put your dc down.

hope this helps

oh and if you get insurance and the start up pack through NCMA they send you a handbook with some of this information in...not sure if MM do it tho

My amateur brain says:
1 - I charge to expenses anything that is used solely for childminding (ie not toys and storage I buy for my own DD and she shares with the mindees).
2 - I was told I could claim a percentage of the mortgage if I had an area of the house that was use solely for childminding and nothing else .... however, then I would have to declare that part of the house as a business premises and pay business rates on it!
3 - I have never expensed food for my own mindee (or entrance to parks, toddlers etc), because they are not business expenses?
4 - Never heard of this. Did try to find out if my husband could pay me in childcare vouchers to look after DD, but was told "No".
5 - If you have an area of the house which is not accessible to the mindees and they cannot get into it, then you can choose to have it excluded from your registration (I used to have our master bedroom excluded and we put a lock on the outside of the door).

Hope this helps, but I'm not a tax expert!

HMRC: Childminders Expenses

That document does not answer all your questions but may be of help.

4 - Never heard of it. You could try calling the Tax Credits Helpline but they may not know about it either!

1. if only bought because of childminding 2)yes but you lay yourself open to capitol gains tax (so not worth it imo - get professional advice) 3)No chance because the tax man would assume you would feed your own child 4)No chance 5)fine....although if a child escapes & ends up there if it's not registered your insurance won't be valid

Thanks for the help everyone! You've made lots of useful points.

I swear I saw the 'special tax code for childminders' somewhere but can't remember where or find any reference to it now... am starting to think I must have dreamt it!