accountant

[marjie b]

does anyone use the accountant that only deals with childminders?
I wont mention his name!!!

its just i have never used an accountant b4 but i have just sent my books off to him a couple o weeks ago, it just seemed bit odd, didnt want receipts 4 anythin at all, just asked me to write a list of start up costs, send in my ncma accounts book, which obviously has all my outgoings etc in and wait to be contacted!

It looks like i have earned bout 9500 b4 expenses etc so im just wonderin on average what i can expect to pay in tax really??
is it easier to use someone like this and do u think he will use his knowledge to my advantage?

I have used the very helpful list on the forum to try and include all the expenses i may have otherwise forgotton so hopefully this will help...

Does anyone have experience of this chap? any advise gratefully recieved!

marjie x

[TheBTeam]

Sorry no, i haven't bothered with an accountant, because i use the ncma accounts book if i have gone to the trouble to do all of the writing up I don't see the point of paying an accountant to fill out my tax return which online only takes about 5 mins, and i don't really want an accountant knowing anything about my building society or bank interest which they would do to fill out your tax return.

[jeanybeany]

I used an accountant last year, sounds like the same person. I found them very helpful, but I earn't nothing hardly and ended up paying tax, not much but couldn't see how it came to that at all. This year I have done them myself as I wasn't happy that the accountant I used submitted it without even telling me first what my bill would be.

I think it's personal choice. I think it's nice to have someone to ask.

Hope your happy. Oh I did send all my receipts.

[ORKSIE]

I have never used an accountant. I dread tax every year but once i get stuck in it dont take long.
Plus my DH is very good at numbers and he helps me with the %ages, and the scary stuff:blush:

[sarah707]

Did you tot up your figures before sending it off?

Your expenses will probably be between 1/2 and 2/3 of your income.

So...

Your earnings £9500

Your tax free bit £6000 (well it's 6035 but I'm making the sums easier)

Your expenses let's say £4000 to be on the conservative side

Your tax bill will be 20% of nothing!

However, if your expenses are lower than £3500 then you will have a tax bill to pay.

Plus if you have any taxable income from investments or benefits that are taxable or other earnings they will be added into the figures.

Hth :D

[hollybritten]

I have accountant, do not have to fill out ncma book, just save all receipts, very easy, tax is usually about 23%, that what she has told me to put aside every month!
Very good price too pm if you want details
x

[Chatterbox Childcare]

I don't think you will pay any tax at all.

[rickysmiths]

I would like to add to the mix that aside from you set up costs which will inflate your expenses certainly for your first year and will make expenses higher for a couple of years as you add to your resorces, that I would be very wary of submitting expenses as high as 2/3 income in a normal year.

Your expenses will have a fixed ellement, heating, light, council tax etc which will be the same how ever many or few children you mind. There will be other costs that will change depending on the number of children you care for, food drinks, craft supplies, paints etc.

Your expenses will also become a lower percentage of your income the higher your income is.

I submitted expenses in excess of £8000 for 2008-9 but my income exceeded the NCMA threshold for submitting short accounts. I have used an accountant for years and she was shocked that the recommendation on the forum was expenses should be 2/3 of income!

If your income is under £30,000 for 2008-9 ( I believe the limit has be raised for 2009-10 but haven't checked this yet) the inland rev do not require any reciepts for any item or group of items bought together for under £10.

I use the NCMA account book and my accountant has never asked for or seen any of my reciepts ever. She is happy that I keep them bundled in the months of the year and together for the year so they can be matched to my accounts book if required. The tax office don't need them unless there is an investigation.

[Chatterbox Childcare]

I would like to add to the mix that aside from you set up costs which will inflate your expenses certainly for your first year and will make expenses higher for a couple of years as you add to your resorces, that I would be very wary of submitting expenses as high as 2/3 income in a normal year.

Your expenses will have a fixed ellement, heating, light, council tax etc which will be the same how ever many or few children you mind. There will be other costs that will change depending on the number of children you care for, food drinks, craft supplies, paints etc.

Your expenses will also become a lower percentage of your income the higher your income is.

I submitted expenses in excess of £8000 for 2008-9 but my income exceeded the NCMA threshold for submitting short accounts. I have used an accountant for years and she was shocked that the recommendation on the forum was expenses should be 2/3 of income!

If your income is under £30,000 for 2008-9 ( I believe the limit has be raised for 2009-10 but haven't checked this yet) the inland rev do not require any reciepts for any item or group of items bought together for under £10.

I use the NCMA account book and my accountant has never asked for or seen any of my reciepts ever. She is happy that I keep them bundled in the months of the year and together for the year so they can be matched to my accounts book if required. The tax office don't need them unless there is an investigation.

It is £60000 next year I believe

[marjie b]

thankyou ladies, u r all very helpful, particularly you sarah, a genius in all things childminding it seems lol!!

I think its more the fear of the unknown that makes me worry and I didnt fancy gettin lumped with a big tax bill!! this self-employed milarky is harder than it first seems!

lets hope he doesnt take too long to put me outta my misery......:rolleyes:

[rickysmiths]

Thank you Debbie. I've had a check! Its £69,000

[Minstrel]

tax is usually about 23%

I thought it was 20% all the time? I mean unless it changes in the budget?

[Chatterbox Childcare]

I thought it was 20% all the time? I mean unless it changes in the budget?

20% plus your 8% class 4 NI