Annual earnings and tax

[pinklady756]

This is the first year in which I will make enough money to actually have to pay tax!!

Can I ask what % of your income is expenses? Mine is looking like it will be 35-40%, I'm trying make sure I claim every single expense!!! I just wondered if that's average or higher/lower than others.

I'm finding it difficult to work out food/drink expenses, looking at %'s and pricing by meal, does £50 a week sound reasonable (working full-time with 3 eyfs children every day for meals/snacks and 3 after-schoolies every day (some come full days in hol's)?

I would be really interested to know how others working full-time get on - how these figures compare.

Are there any figures out there for average annual earnings of childminders working full-time?

Many thanks

[TAZ]

I've just checked my accounts for last year. My expenses were 25% of my income. I work full time (40 hrs) but do not have 'max' numbers for income as 2 of my own children are under 8, also have 2 mornings without mindees.

[Tunja]

My expenses are approximately 2/3rds of income. The percentage will vary depending on the service you provide and how much you put back into your business.

To work out food expenses I work out a list of approximately six of each meal type. For example my last one for dinner was for beef stew with crusty rolls, sausage, wedges and beans, minced beef pie mash and peas, lamb neck fillet new potatoes carrots and broccoli, chicken curry rice and naahn, shepherds pie and cabbage, fish pie and peas with puds yoghurt, ice cream meringue and fruit, banana, fruit crumble and custard, trifle, mouse, choc sponge with choc sauce. Each recipe was divided costwise into per portion cost. The total bill for this lot was £18.93 per serving. This divided by the seven meals gives a meal cost of £2.71 per child's evening meal.

If you are serving similar meals then with dinner alone for six children it costs £81. If you have some full time then there will be lunch, snacks and drinks to add and possibly breakfast too. My figures estimate Evening meal and drink is £2.89/child. Snack and drink 62p. Lunch and drinks £2.35. Breakfast and drink £1. I have kept the menu and costings and include them in my account book in case these are ever checked. I review these costings annually. This year due to food price rises they went up 12%.

For calculating your % of utility bills there is a handy calculator at http://www.childminding-secrets.co.uk which works it out for you.

Annual earnings would depend on how much they charge and what expenses they have and, would depend on the region worked in and capacity.




Can I ask what % of your income is expenses? Mine is looking like it will be 35-40%, I'm trying make sure I claim every single expense!!! I just wondered if that's average or higher/lower than others.

I'm finding it difficult to work out food/drink expenses, looking at %'s and pricing by meal, does £50 a week sound reasonable (working full-time with 3 eyfs children every day for meals/snacks and 3 after-schoolies every day (some come full days in hol's)?

I would be really interested to know how others working full-time get on - how these figures compare.

Are there any figures out there for average annual earnings of childminders working full-time?

[lynncjt]

I don't know my % of earnings yet but will be very high this year with all my start up costs (no kids my self so had to buy all my resources)

I'm doing my food on the basis of a set amount per meal, I've costed up a few examples and will then use the same prices for each meal. Makes my accounts much easier!

[MrAnchovy]

I don't know my % of earnings yet but will be very high this year with all my start up costs (no kids my self so had to buy all my resources)

I'm doing my food on the basis of a set amount per meal, I've costed up a few examples and will then use the same prices for each meal. Makes my accounts much easier!

You should get a good accountant: if your profit falls below £8,100 you are "wasting" those expenses. If any of them can be properly treated as capital and deferred to later years when your profits are higher (book and toy libraries, storage, pushchair, changing table...) it will probably be worthwhile. And with no kids of your own you can probably claim much higher expenses for use of your home than the percentages HMRC allows for childminders looking after their own kids too.

[MrAnchovy]

Of course its probably a bit late to do that before 31 January, but go ahead and file your return: it can simply be resubmitted any time in the next 12 months.