Childminders Club - Help with Figures for TAX CREDITS

[HellyBelly]

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??

[mandyc66]

I find them very helpful when I ring, so I would just ring them and ask!! I think it says gross earnings on form,but as you say you have expenses. Ask them.

[HellyBelly]

I'm afraid I did and they were very unhelpful

Will try again!

Thanks

[mandyc66]

oh!! Well can you contact your local child minder group and ask what they do?
I am sure there will be someone on here to help you. You declare for the year though and ring them with any changes.

[HellyBelly]

I will try that, thanks

[mandyc66]

sorry cant be of more use!!

[HellyBelly]

That's fine, I'm sure some childminders will see this later on and help me out - I've never quite got the hang of the tax credits thing!!

[MaryBS]

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.

[HellyBelly]

Cheers MaryBS, will try later this afternoon as it's unavailable until then.

[Xena]

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]

i spoke to someone at tax credits last week they said you gave them an estimate ,after all your expences are taken off.

[HellyBelly]

Thanks Bigdonna - will have a play with some figures but it's so hard when you start out as you don't know how high the expenses are going to be. Will have a guess!

Thanks

[bigdonna]

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]

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.