CM CLUB: Monday Morning Staff Room!...Topic of the day...Tax Assesments!

[PinkChick]

completing mine today, got everything together except expences and bills so doing that just now....so other than the normal council tax/water/elec & gas/sky multi room...what else can i deduct/partially deduct???

any tips on anything new we can deduct would be fab !...

Eggy bread and sausage sarnies over on the table with hot choc & cream just brewing ..enjoy .x

Toys, books, CDs, DVDs, Food, petrol, fees (OFSTED/NCMA),Advertising, stationery

Morning

Pinkchick couldn't you pick something a little less "taxing" for a mon morning!!.........sorry, couldn't resist

Have you bought any new buggies, highchairs etc? x

Morning Katie ...thanks for those..hadnt rememberd OFSTED / NCMA, can i deduct them fully?...and had forgot advertising ie: vista print, as although its usually always free i like to get my moneys worth so pay quite a bit postage

Whats the latest tax code then / the amount we can earn up to before taxing?.x

LOL ..sorry
ooh high chair...forgot that too...note to self..must keep reciepts more organised ..or at least write them down as i buy!

also bought lap top which is, id say prob 80% for business=work/paperwork/kids playing/resourses etc..can i put full cost or partial?

So..sorry to be a nuisnace

i find my total earnings, do i then take off the 10% wear and tear?..or take expenses off first?

and whats the amount we can earn before we start paying tax?

TIa

Total turnover less 10% W&T

is it 6035 personal allowance for the whole of 08/09?

right based on that being personal allowance..i then deduct that and all utilities, meals, cleaning, toys, stationary, ad's etc and the end amount..i work out 20% of and thats what i pay??

Sounds OK - but what about NI you have to pay a %age of that too (I think)

i pay my N.I monthly..or am i missing something??.x

You pay monthly but I think you pay a %age too....maybe 7%?

so 27% off my final amount?

when i changed kitchen last july, because of the little ones i bought appliances that where safer ie:my oven & hob have child locks in place, they cant turn hob on (flat ceramic) by pressing down on glass and oven blows a cool wall of air out when on...what could i deduct for these?..i wouldnt have paid the extra for this type had i not been cm'ing as dd old enough now....also bought appliances to go behind doors to prevent trapping fingers/turning things on?????

Not sure if you could include the appliances, but the things to stop fingers getting trapped, I would include in full.

What about food,drinks,craft stuff,internet, birthday and xmas gifts, travel expenses for mandatory courses, cleaning products, toiletries (soap, anti-bac gel, tissues, wipes, nappies, sudocream), magazines,

Is this your first year? What about start up costs - first aid box, stairgates, fire extinguishers, making garden safe, cost of cert from gp, ncma costs etc

look here

Just had a look at my self assessment tax calculation which I have received - I was charged class 4 national insurance contributions at 8% and also don't foget that in addition to paying the tax you owe for 2008-2009 you also have to make a payment on account for 2009-2010 which is usually half of the tax you had to pay for 2008-2009, the other half needing to be paid in July 2010.

Oh, argh! Should I be doing this now??? I started CMing in Aug this year...

Sooooo scared about getting this wrong (have no idea where to start, although I've kept a record of my expenses, so guess thats something) and ending up owing the government thousands... do they still have debtors prison???

You can't claim anything for the appliances or for the cost of having them integrated behind doors (although you could probably claim for any child-proof catches if you paid for these separately).

You can't claim the laptop as an expense, but you can claim a Capital Allowance, which has the same effect - there is a separate box for this on the tax return. If you bought it in 2008/9 and 80% of its use is for your childminding business, you can claim 80% of its cost as part of the Annual Investment Allowance of up to £50k.

And just to confirm what others have said, as well as Income Tax you need to pay Class 4 NI at 8% on your profits over the threshold of £5,435 (not £6,035 which applies for Income Tax), and as well as paying the total due for 2008/9 by 31 January 2010 you will need to make payments on account for 2009/10 of 50% of the tax and NI due in 2008/9 on 31 January and 31 July 2010 unless you apply for a reduction in these payments on account (because your profits in 2009/10 are lower than in 2008/9).

katy are u on facebook, i need a bit of urgent advice, just spoke to business guy who is coming to see me next week but am wanting to run some things by u first?.x

Leeloo you won't have to pay anything until January 2011, but by that time it could well add up to thousands.

You should put aside some money each week so that this does not come as a shock. Assuming you have no other income, look at your total income for the week, take off the 10% wear and tear and any other fixed expenses you have, take off £110 to cover the Personal Allowance and NI threshold and for every £1 you have left, put 28p into a savings account.

what does anyone put down for meals..if i have a child for one meal + snacks i put £4...if this plus breakfast and dinner i had it down as £6-£7 depending upon appetite...just gave business guy my total figure for food and hes coming out as he said my figure for that is very high??!!!...if we go out through hols and i teat them to lunch out/treats after school etc this all is included..but am panicking now!

Who is this 'business guy'?

£4 a day is very high. You need to be able to substantiate this cost with receipts for food items - are you really spending that much?

No: contact me through my website - if you are quick you can ring - I leave at 3 for school

I put down £4.00 per day per child.

I did a menu then costed it on a tesco online shop, which I printed and kept.

Food does come to that much, fruit is not cheap, and my children get two pieces each per day, they have breakfast, two course cooked lunch, fresh fruit juice/milk to drink. It5 all adds up.

I put through between £1.50 for an under 1 up to £7 for an over 7

Currently school lunches are £1.95 - I charge £1.75 so it's not a bad deal