tax help plz

[emmadines]

this questions prob been asked many times before but Im going to ask n e way!


I want to put money aside for tax and national insurence! how do I know how much to put aside each week/month????

I dont want to end up with a HUGE bill at the end of the tax year!!


emma

[manjay]

this questions prob been asked many times before but Im going to ask n e way!


I want to put money aside for tax and national insurence! how do I know how much to put aside each week/month????

I dont want to end up with a HUGE bill at the end of the tax year!!


emma

Simple answer is do very clever accounting and you shouldn't have to pay tax!! Not sure there are many minders who do but I am sure they will be along to give you an idea.

NI you can start paying now so you don't pay in one go at the end of the year.

amanda xx

[Rubybubbles]

I pay my NI every 3 months tax I put £20 away each month, so if no tax to pay I have a nice lump sum to myself;)

[sarah707]

I've been minding 15 years and I've yet to pay tax... I put away £30 a month and end up with some savings each year for a bit of a treat :D

[buildingblocks]

An accountant tol dme to put away a tenth of your income every time you are paid whether monthly or weekly and into a separate account. Then you have enough to cover any unwanted tax bills and if you don't end up paying tax then you have a nice lump sum at the end of the year. maybe this year I ought to try that one

[susi513]

I agree with 10% but non-childminders recommend around 20%.

Just to give an example my accounts this year, rounded:

£17000 income
£8000 expenses
£9000 profit


So 10% would be £1700 but my bill was £1500 (this includes payment on account for year 07/08, which is required if your tax bill goes over a certain figure).

In my first 2 years of childminding my turnover was less than £2000 so no tax to pay and I was also able to claim exemption from NI payments.

HTH

[emmadines]

thanxs peeps!! gives my an idea what to do! am hopping it will end up in a nice lump sum so i can get a bigger car as it would come in useful if all turns out well with the childminding!!