Tax and start up costs

[Kirlykir]

Hi,

I am hoping someone may be able to give me some advice regarding tax and self assessment - I am new so please bear with!!

If I begin childminding say in March 2015, assume I will have to submit self assessment in April for any income that month? Even though obviously will be below tax threshold but may have to pay NI class 2 on this?

Also, my start up costs (which are quite a lot!) will then go onto tax return for this year and obviously make a huge loss!

Just wondering if this is correct? Would it therefore be easier for me to wait and aim to start childminding in April 2015, save having to do a self assessment this April for just one months income? My start up costs will then properly go into my 'first year'.

Also, should I keep my start up costs separate to my first year accounts. I am intending to use the Happy Toddlers template for accounts (which is fab by the way!). So would I just need to add my start up costs into that first month, i.e. April 2015?

Sorry....I hope these are not totally stupid questions! Appreciate any advice!

[moggy]

I hope someone better at explaining these things than me comes along to help you!

[alex__17]

I am also watching with interest, my completely inexperienced opinion would be as long as income is declared and tax paid I can't see what a month difference would make but then again I'm sure it all has to match bookkeeping. ..I think you can offset losses from one year against nrxt to pay less tax?

[tulip0803]

Not stupid questions

If you started in March you would have to fill in a Self assessment for 2014/15 year. You can carry forward a loss to the next year. So next year you would fill in the box about losses carried forward and that would reduce your earnings for that year IYSWIM. If you have paid tax on another job this year you also have the option of a rebate. If you want to make things simpler you can wait until april.

If you earn less than the NI threshold you can apply for a small earnings exemption certificate which means you do not need to pay class 2 BUT if you are going to need Maternity Leave, SSP etc it is best to pay Class 2 as your entitlement is affected if you don't pay it.

I was told by HMRC to add up all start-up costs and put them in on the first day of minding as "Start-up costs". Keep these receipts in an envelope also marked "start-up costs"