Tax advice

[It's a small world]

Hi

I am due to have new children start in september and just needed a little advice. Think im going to have to get an accountant. Anyway on a rough estimate I could be earning in the region of £15,000-£17,000 if ive calculated it right. This does not include any of my holiday ( 4 week) and obviously no expenses. Could someone advise what tax i would pay if my expenses were in the region of £5000 so income -£10,000-£12,000? Just gives me an idea i know figures will differ . Thanks x

[Bridey]

http://listentotaxman.com/

The above is link to a tax calculator that tells you the NI conttributions too. Have a play with it and it will give you all the info you need for any amounts you want to enter. You can set which year you want it to apply to.

[Kiddleywinks]

Without meaning to sound rude, cheeky or nosey.... Are you sure your expenses are going to be so small?

[rickysmiths]

Without meaning to sound rude, cheeky or nosey.... Are you sure your expenses are going to be so small?

As a rough guide HMRC expect you expenses to be approx 1/3 of your gross income. If they are a lot more than that you run the risk of an investigation.

I have been childminding for 18yrs and have always easily fallen in that ratio and I spend a lot on food alone, £5000 last tax year but I am always around 1/3 for my total expenses.

[It's a small world]

Thank you guys.

My expenses are just a rough guide if they are more then better for me . I just used a rough figure so I can estimate roughly what I would pay. My figures will differ as will have more school runs/ more food expenses etc.
Appreicate all your advices xxx

[It's a small world]

http://listentotaxman.com/

The above is link to a tax calculator that tells you the NI conttributions too. Have a play with it and it will give you all the info you need for any amounts you want to enter. You can set which year you want it to apply to.


This is fab.I actually pay my NI by direct debit through the year. I have saved this it will give me an idea on how much I roughyl need to save. Thank you. I will have a better idea when newbies start...

[Bridey]

I don't want to be rude but are you sure about the NI bit?

I pay the voluntary Class 2 contributions by DD throughout the year but I also get charged Class 4 NI when I submit my tax return - that one is based on your income and is the one shown on the calculator.

There may be other ways of doing it but I don't want to you to be unaware and get a nasty shock!

[It's a small world]

I don't want to be rude but are you sure about the NI bit?

I pay the voluntary Class 2 contributions by DD throughout the year but I also get charged Class 4 NI when I submit my tax return - that one is based on your income and is the one shown on the calculator.

There may be other ways of doing it but I don't want to you to be unaware and get a nasty shock!

oops yes sorry had to pay £52/£56 class 4 last year but other than that the rest rest (class2) done on dd. I know a cm who doesnt and gets a bill end of each year. They are changing to dd like above much easier and no big bill at the end x

I do not like accounts (numbers not my best so with such a high income thinking of getting an accoutant as sure there are some things I don't claim for that I should be doing..:blush:

[francinejayne]

As a rough guide HMRC expect you expenses to be approx 1/3 of your gross income. If they are a lot more than that you run the risk of an investigation.

I have been childminding for 18yrs and have always easily fallen in that ratio and I spend a lot on food alone, £5000 last tax year but I am always around 1/3 for my total expenses.

My expenses are way more than 1/3 - they are actually more than 1/2!

I don't care for a large number of children (personal preference) and we do go on lots of days out that costs quite a bit and I seem to have an addiction to buying new resources quite a lot of the time!!!

I shall await my inspection if what you say is correct!!!

[rickysmiths]

My expenses are way more than 1/3 - they are actually more than 1/2!

I don't care for a large number of children (personal preference) and we do go on lots of days out that costs quite a bit and I seem to have an addiction to buying new resources quite a lot of the time!!!

I shall await my inspection if what you say is correct!!!

As long as you can back everything up then you should be OK I prefer to keep a check so I actually have some money to pay my bills.:D

I also go out a lot and we do all sorts of things and I add to my resources.

[Wheelybug]

My expenses are way more than 1/3 - they are actually more than 1/2!

I don't care for a large number of children (personal preference) and we do go on lots of days out that costs quite a bit and I seem to have an addiction to buying new resources quite a lot of the time!!!

I shall await my inspection if what you say is correct!!!

Lol another resource buying addict here so my expenses are closer to half my income too! Looks like I may get an inspection too!

Cathy
www.cathys-childminding.co.uk
www.pre-schoolplay.blogspot.com

[BuggsieMoo]

Sorry how come you have to pay class 4 NI?

I pay my NI by DD each month and have never been asked for class 4 contributions. What criteria warrents class 4 contributions please? x

[Wheelybug]

Class 4 contributions are due if you earn between approx 7000 and 42000 - exact figures are here: http://www.hmrc.gov.uk/rates/nic.htm. Usually these are calculated automatically when you do your tax return.

Cathy
www.cathys-childminding.co.uk
www.pre-schoolplay.blogspot.com