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Childminders Club - Help with Figures for TAX CREDITS
HellyBelly · 26/06/2005 07:56
Hi again
I now have a question about tax credits.
I have my first mindee starting a week tomorrow so I pressume I need to contact the Child Tax Credit people? When I tell them I'm now earning, I'm not sure what figures to quote? Do you tell them the annual paid figures (example, get £500 per month so £6000pa)?
Reason I'm not sure is because I will have expenses out of these payments so this is not what I'm actually earning.
Can anyone offer any assistance please??
MaryBS · 26/06/2005 08:19
There is a link to Tax Credits on the Inland Revenue website - www.inlandrevenue.gov.uk
If you click on it today, it says the link isn't available. I may be able to help explain things as I have a job as a payroll administrator, so get pretty used to "government speak".
I don't think you have to declare things straight away, unless its to your benefit, you get an opportunity to 'put things straight' at the beginning of every tax year, although this may result in an overpayment of tax credits.
Xena · 26/06/2005 08:52
Tax credit will only take into account what your 'actual' earnings are. You immediatly take of 10% of your earnings as wear and tear, plus the amt you can deduct from Council tax, water, gas, electric etc, Plus any food or other things you need to buy. They just work on my estimate yearly income and then they adjust it the following year. They don't make you pay it back in a lump sum if your earn more than you think they just give you less each month the next year. In the first year of c/minding your actual earnings will be quite low as you need to include all your start up costs.
bigdonna · 27/06/2005 12:49
just try and work out food each week and wipes ,lunches out,ice creams,you can put 2/3 for expences,carpet cleaning,if it is under 4.500 you do not pay tax either.i think the lady said between 27.00o and 5o.oo0 you got 547.oo a year .As i forgot to ring to say my income had gone down.
bigdonna · 27/06/2005 12:55
just try and work out food each week and wipes ,lunches out,ice creams,you can put 2/3 for expences,carpet cleaning,if it is under 4.500 you do not pay tax either.i think the lady said between 27.00o and 5o.oo0 you got 547.oo a year .As i forgot to ring to say my income had gone down.
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