HELP!!!

[naomiesian]

OK here goes, I currently work as `cleaner in charge` at a local school for 16 hours a week, my work hours are 7am for just over an hour and then I go back in at 5.30pm until 7.30pm mon to fri, my plan was to childmind in between these work hours but I haven't been happy there for a while, feel more like a slave than a cleaner, I claim tax credits because I only work 16 hours but have now decided that as I'm now a registered cm I want to hand my notice in at work and just do the childminding, I cant do both as my working hours will be from 7am until 7.30 leaving no time for paperwork,eyfs or most importantly my own 2 children. My dilemma is trying to work out my finances, I estimate that my earnings from cm are going to be roughly around 9k a year without me taking off any deductions, so I think I am still going to need to claim tax credits to be able to pay rent and basically live. This is now where I'm confused! what figure should I give them? I have already spent £1800. on start up costs, I will then have % to take off rent, water, heating etc and then day to day costs but I cant know what these are going to be until I`ve actually been cm for the year so am totally confused :blush: Any help or advice would be greatly appreciated..
Many thanks Naomiesian xx

[Chatterbox Childcare]

I don't have any experience of claiming tax credits and someone who has will come along soon

What I would say is that the IR are the experts here and I would go back to them and say that you don't think you will make a profit this year and can they advise you on what you should do.

Sorry not much more help with this.

[singlewiththree]

I have told tax credits I will earn £6000 this year. That way I am under the tax bracket and get maximum tax credits. As the year progresses and I get a better idea of how much I am going to earn I ring them and alter it so that way I'm not being overpaid. The best thing will tax credits is to keep them informed. I registered in Dec 2009 so only had a couple of months before the end of the last tax year and officially made a loss on my CM but I had some employment as well. This year I'm not going to make a loss but should still be under the tax payment bracket as only work term time only and have 2 spaces.

[naomiesian]

I have told tax credits I will earn £6000 this year. That way I am under the tax bracket and get maximum tax credits. As the year progresses and I get a better idea of how much I am going to earn I ring them and alter it so that way I'm not being overpaid. The best thing will tax credits is to keep them informed. I registered in Dec 2009 so only had a couple of months before the end of the last tax year and officially made a loss on my CM but I had some employment as well. This year I'm not going to make a loss but should still be under the tax payment bracket as only work term time only and have 2 spaces.

Thanks for that, just one more question (sorry). I'm not going to start CM until I work my 4 weeks notice at my other job so don't plan on starting until just after 5th April, I think I'm going to come out with roughly £5000 after all deductions If I'm lucky, so do I tell tax credits £9000 before any deductions or the £5000 I think I will earn. thanks xxx

[marzi]

I looked into this a while ago and was told that they base all calculations on your net income so after you've taken all your costs etc off. This may have changed though.

Try looking on www.entitledto.co.uk it tells you any benefits money you are entitled to and even includes a tick box for childminders lol. Also the tax credits calculation i got from there was correct to the penny unlike the actual tax credits calculator on the IR website which was nearly £100 out!!

HTH x

[Chatterbox Childcare]

Thanks for that, just one more question (sorry). I'm not going to start CM until I work my 4 weeks notice at my other job so don't plan on starting until just after 5th April, I think I'm going to come out with roughly £5000 after all deductions If I'm lucky, so do I tell tax credits £9000 before any deductions or the £5000 I think I will earn. thanks xxx

Tell them the £6000 for now and amend it later in the year if you need to (this is high even if you take £9000 per year)

If you have expenses for setting up this year, please advise the IR that you are self employed too NOW and then put the costs through as a loss, otherwise you will lose them

[naomiesian]

Thanks for that Debbie I will, everythings changed again now as I have parents pleading with me to care for their children a.s.a.p, so I have agreed to start on the 1st March instead so will be ringing the IR on that day. Thankyou so much for your advice xxx

[Bridey]

I always slightly over-estimate the amount I think I'm going to earn. (Not so much that I leave myself not enough to live on). That way I get money back in a nice lump sum rather than being asked to pay them more at the end of the year.