Expenses - slightly confused

[AnnR]

Im starting childminding in Sept as breakfast/afterschool children and have been reading threads on expenses claimed and have got myself confused.

Am I correct in thinking that my expenses are paid by my income but just lower the amount of tax I pay? So once I deduct them from my income and paid any tax what I am left with is my profit?

Can I claim for expenses from last year as my starting date has been put back due to birth of my daughter. I became registered in feb 12 but have some expenses from nov 11.

Any help would be appreciated.

[Kiddleywinks]

That's correct. Self employed people are taxed on their profits, so

Income (fees)
less expenses (costs)
= profit
less taxable allowance (2012 - 2013 is £8105)
= amount of profit to be taxed @ 20p per £1

Monies spent on 'setting up' your business are allowed so I would add up all the receipts and enter the total amount under expenses as Start Up Costs

:thumbsup:

[AnnR]

Thank you. Will get them all together.