Nanny Employers and Annual Tax Returns - can you claim for gas and electricity??

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I think I basically need to speak to an accountant but this is my first year as a nanny employer and so I need to fill in an annual return. As an employer however or someone whose place of work is my home, can I claim back tax relief on gas and electricity that is used throughout the day?

If you employ a nanny you almost certainly need to register as an employer with HMRC, and you should have been operating PAYE (the Pay As You Earn scheme under which you deduct Income Tax and National Insurance from the amounts you pay your nanny and pay it to HMRC). Employers' annual returns are made in April/May.

Have you registered as an employer?

If you are running a business from your home, you may be able to claim part of the cost of gas/electricity etc. but you need a good understanding of the principles involved.

Are you running a business from your home?

Are you talking about two separate issues here? If you work from home then you can deduct some costs from your tax return. However, if you are talking about deducting costs for your nanny, that's different. She is your employee and she (as the employee), not you (as the employer), has been working from your home which is not the same thing.

Thanks MrAnchovy - yes I'm all above board and fully registered with HMRC and NannyTax - my question was prompted by the tax return request sent to me by HMRC....

AnnH - maybe I am asking too different questions, I don't know. I do not work from home and apart from being a registered employer (for my nanny) I don't operate a business out of my home. But on the basis that I am an employer (of my nanny) and she works in my home, I guess I was wondering whether I could therefore claim anything?!

Maybe I do need to find myself an accountant.....

i would think it highly unlikely on the basis that the largest cost of all, and the only one that is wn&e for the pupose of employing a nanny ie her salary is not deductible.

Thanks Mrs Wobble.

Was NannyTax not able to answer that question for you? If not, begs the question as to why you are using them!

I don't feel you can claim anything like heat/light as an employer of a nanny. As a small employer you can get 105% of Statutory Maternity Pay paid back, can't think of anything else though.

The form you have been sent is probably fairly generic, in that it is sent to all small businesses - not just employers of domestic help.

You don't need an accountant, the nanny payroll company should sort much of this kind of thing out for you, so if you have not already spoken with them give them a call and tell them what form you have received and ask how it should be completed.

If you are using NannyTax surely they should do the end-of-year return for you? That's what you are paying them for! When I used them, they never suggested being able to make any deductions for utilities because of having a nanny so if it was possible I think it is something they would do as a matter of course for everyone, rather than you having to suggest it? Even more telling, I suspect if it was possible, the MN Nanny Employers posse would have discovered it long ago!

Don't you know? Employing a nanny has all of the responsibilities and none of the perks of being a small business.

Doh! Yes, you are right, I hadn't even thought about asking NannyTax for this. Got a brain full of mush clearly!!

Thanks all. Suspect you are all right about not being able to claim. Will also call NannyTax in the morning and check that they will do the return for me.

Still need an accountant, but that's for something else entirely