View Full Version : how much should I be putting away for tax payment.
little miss sunshine
08-01-2009, 12:28 PM
Right ladies been childminding for a year now and last time my accounts went in I got a rebate, this probably due to buying equipment and toys. This year I will obviously not be buying as much and so was wondering say for example my fees come to £700 and my expenses work out at £150 say, what percentage must i keep back from the £550?
I don't want to be landed with a huge bill and not of saved any:panic:
Janet x
Minstrel
08-01-2009, 12:34 PM
you pay 20% on all profit over £6035. hth
Andrea08
08-01-2009, 12:56 PM
you pay 20% on all profit over £6035. hth
hi sorry to ask but where did you get the £6035 from please as i too was wondering how much i can earn a year and how much tax after that thank you xx
FizzysFriends
08-01-2009, 01:00 PM
HMRC website will give you all the tax information. In the pre-budget report they changed the allowance but they are staggered so might be worth taking note of them.
tinkerbelle
08-01-2009, 01:07 PM
the £6035 is the tax limit for earnings anything oever this is classed as taxable so as my accountant says if you get your income after deductions below £6035 then there is no tax to pay
rickysmiths
08-01-2009, 01:32 PM
The technical term for the £6000 is it is your presonal tax allowance and apart form a few exceptions eg pennsioners it is the amount the chancellor says we can all earn before we start paying tax and it applies to employed and self employed people.
For more detail look in your members hand book if you are a member of NCMA gives info and the level each year cause the amount changes with each Budget.
Minstrel
08-01-2009, 03:54 PM
yes agree with the others. Its your personal allowance. If you earn ( profit= earnings) between that amount and about £32,000 (i think but dont quote me on it!) then you pay 20% Income Tax. over that its 40%.
dont forget you only pay tax on the portion that is over £6035 not the whole amount.
little miss sunshine
08-01-2009, 05:35 PM
yes agree with the others. Its your personal allowance. If you earn ( profit= earnings) between that amount and about £32,000 (i think but dont quote me on it!) then you pay 20% Income Tax. over that its 40%.
dont forget you only pay tax on the portion that is over £6035 not the whole amount.
wouldn't life be great if there where no tax:laughing:
Andrea08
08-01-2009, 05:50 PM
Great thank you I understand now it looks like i wont pay tax as ive not earned that much yet again ,,still skint lol
Alibali
08-01-2009, 06:03 PM
Right ladies been childminding for a year now and last time my accounts went in I got a rebate, this probably due to buying equipment and toys. This year I will obviously not be buying as much and so was wondering say for example my fees come to £700 and my expenses work out at £150 say, what percentage must i keep back from the £550?
I don't want to be landed with a huge bill and not of saved any:panic:
Janet x
I think you need to try to find more expenses, from your total income from childminding you should be able to put around 2/3rds down as expenses. In saying that my weekly income is no where near £700.
little miss sunshine
08-01-2009, 11:05 PM
I think you need to try to find more expenses, from your total income from childminding you should be able to put around 2/3rds down as expenses. In saying that my weekly income is no where near £700.
I wish for a week, £700 was just an example and that would of been a monthly figure. Got some idea now of what i should be putting away.