Tax!!! :(

[Blueeyedminder]

Hiya just trying to sort stuff out and looks like I'm going to owe a lot of tax! Does anyone know what happens if you can't afford to pay by 31st January? Anyone ever experienced this??

[samb]

Are you sure you've worked out all the expenses you can claim for? There's a list in free resources. If you don't pay on time I am sure you will be fined so I would have another look at figures. There must be something? Hugs

[Blueeyedminder]

I've looked and looked!! Would be ok if they didn't charge and extra 50% on top for next year!!

[loocyloo]

I think you can call them and arrange a payment plan.

[tigwig]

This happened to me once then I realised I had massively underestimated my expenses. I spoke to other more knowledgeable childminders and they told me all the things extra I should have claimed for. This equated to about another £4000 as I had a car and so much more I never realised I could have put through. I phoned the tax office and told them everything. I had to make an amendment and it reduced the amount of tax due considerably. I suggest you do the same! In my experience I have not known many others who earn enough to pay the other 50% on top. That's the crucial thing really, to aim to get your expenses below that amount (can't remember what it is sorry) to avoid doing it. I think if every little possible thing is claimed for correctly this can easily be done.

[Emra81]

I'm sure I read somewhere that if you owe less than £1000 tax you don't have to make payments on account (I think that's what they call it when you have to pay the following years tax early) but I could well be making that up!

[Blueeyedminder]

Thanks for your replies! Going to go over everything with a fine tooth comb on the weekend!

[Chatterbox Childcare]

If you don't make your payments you will be charged interest from day 1, no exceptions but you can ask for a payment plan.

If you want some help with expenses then please pm me

[Kiddleywinks]

Have you actually filed your tax return yet, or are you just going by the figures you have worked out?
You pay 20p per £1 for profit over your taxable allowance, not on your total income (Some people get confused about this)

so to pay £1000 in tax you would have to show as profit £14,440
Which, when you then deduct your TA of £9440, leaves you £5000 taxed at 20p per £1

Have you deducted your personal allowance for last year (£9440)
Have you deducted the 10% wear and tear from your total income?
Have you claimed your allowance for council tax, rent if applicable, gas, electric, water
Mileage @ 40p per business mile
Meals for minded children
Toiletries (nappies, wipes, loo roll etc), cleaning materials
Stationary - paper, ink, stamps, envelopes
The list is endless :thumbsup:

[jackie 7]

I have had this problem before. Easy to sort out. I pm you if you want to talk. You have 6 months to get some money ready. Don't worry. Have a plan before talking to them.

[Blueeyedminder]

Thanks so much everyone! Feeling a lot better now! I'm just such a stress head when it comes to owing money! Time for a cuppa!!

[Simona]

Hiya just trying to sort stuff out and looks like I'm going to owe a lot of tax! Does anyone know what happens if you can't afford to pay by 31st January? Anyone ever experienced this??

It depends on what you mean by a 'lot of tax'...if you have earned a lot of money then you pay tax accordingly...if not you pay less

CMs should really save towards tax every month...tax is due end of January and end of July...put a little amount in a CMinding savings accounts then you will never have a nasty surprise...you can't owe HMRC money unfortunately