Please help me with my question about End of Year Tax form and maternity leave.

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Hi I am a childminder, I went on Maternity leave July 08 and started working again on the first day of the new tax year 09. I know I have to put all earnings and expenses through my books until July but what do I do after that? I have been receiving the government maternity pay, does this have to go through as earnings? Also while I was on maternity leave I bought some pieces of equipment which I have put aside to use for my childminding. Can these go down as expenses even though I was not 'working' at the time as I was on maternity leave? Am really unsure what to do, Do I do a tax assessment for April08-July08 and send that or do I do it for the whole year? Hope I am making sense please help me TIA

The Maternity Allowance you received from the government is not earnings from your childminding business, so you should not show it as income from self-employment. But it is taxable income, so it should be entered in the appropriate place on your personal tax return (box 14 on the 2008-9 return).

Providing the pieces of equipment you bought would normally be allowed as expenses against your childminding business, you can claim these, but not in the 2008-9 return - these expenses should be set against your income when your business resumes in 2009-10.

Your tax return should cover the whole year, although there will only be childiminding income and expenses up to the point you stopped chlidminding. So you will only be able to claim 3 months Council Tax, gas and electricity (at the appropriate rates) for instance.

Note that you are allowed to work for up to 10 days while you are receiving MA, so if you did do the odd day, don't forget to include the income (and any expenses) for these on the return.

Thanks for your reply best I get on with my return!