Someone told me

[Carol M]

That we should be doing FULL BUSINESS ACCOUNTS if we do the car depreciation and costs way ??
Anyone know for sure, thats worried me !
Carol xx

[Chatterbox Childcare]

I don't do full accounts and cannot see why it would be needed. Haven't done for 10 years+.

I do my mileage and split up all the car expenses but that is it

I show the capital expenditure on my tax return as one figure and all other expenses as another.

[miffy]

I'm not sure Carol but it does say in my old NCMA handbook that you might keep full business accounts if you have decided to claim capital allowances for certain items.

I'd give the tax office a ring and ask them (and get the name of the person you speak to!)

Miffy xx

[auntym]

I rang tax as I claim for my 7 seater. Was told capital expenses on car only! That means keep petrol rec, insurance, mot, I use it 80 percent business. I asked about under ten quid rule in other areas eg. Toys equipment etc, he said treat all othem same as usual as im only claiming capital exp for car. Rest of business books as normal.

[Helcatt]

I bought a 7 seater this year and was wondering about this.

How hard is it to work out? Or am I better off getting an accountant to look it over? I could only just about understand that I could do it, let alone work out how

Hx

[Chatterbox Childcare]

I bought a 7 seater this year and was wondering about this.

How hard is it to work out? Or am I better off getting an accountant to look it over? I could only just about understand that I could do it, let alone work out how

Hx

It is easy to do but what percentage of your car do you use for business? This determines whether mileage or full accounts are worth while

[Carol M]

It's working out about 85% business, possibly more when I get a full years mileage record. I do have another car. I think I will go depreciation route as I did buy this 7 seater for childminding and would not have bought a brand new car otherwise. I made sure when I bought it that it fitted the criteria eg engine performance etc.
We live and learn, I have heard so many ways in which other childminders claim for their cars, some,I might add ,that I know are not correct!!
Carol xx

[Helcatt]

I wouldn't have bought a car either if I hadn't been minding, I would ahve stuck with my old 5 seater, it just didn't work on one of my old contracts, typically that came to an end 2 months after new car arrived.

I would say 80% of day to day use is cm related. The only time i've used it recently when not working was going on holiday

I had been working out mileage on trips and running it through the books that way

HX

[Chatterbox Childcare]

It's working out about 85% business, possibly more when I get a full years mileage record. I do have another car. I think I will go depreciation route as I did buy this 7 seater for childminding and would not have bought a brand new car otherwise. I made sure when I bought it that it fitted the criteria eg engine performance etc.
We live and learn, I have heard so many ways in which other childminders claim for their cars, some,I might add ,that I know are not correct!!
Carol xx

Carol your percentage is a good high amount. When do you buy your car and what are the omissions? This affects whether you claim 10 or 20% depreciation

[Chatterbox Childcare]

I wouldn't have bought a car either if I hadn't been minding, I would ahve stuck with my old 5 seater, it just didn't work on one of my old contracts, typically that came to an end 2 months after new car arrived.

I would say 80% of day to day use is cm related. The only time i've used it recently when not working was going on holiday

I had been working out mileage on trips and running it through the books that way

HX

So are you claiming mileage or capital depreciation?

[Carol M]

Carol your percentage is a good high amount. When do you buy your car and what are the omissions? This affects whether you claim 10 or 20% depreciation
I bought it new in Jan 2010.
The emissions are just below the set limit 159.
Am I right in thinking I would be better doing depreciation?
Another question Debbie :blush: I am buying it on finance, can I put through the % minding usage for the total monthly payment?
Carol xx

[Chatterbox Childcare]

I bought it new in Jan 2010.
The emissions are just below the set limit 159.
Am I right in thinking I would be better doing depreciation?
Another question Debbie :blush: I am buying it on finance, can I put through the % minding usage for the total monthly payment?
Carol xx

If you purchased it in Jan and your year finished in March 2010 you can claim the depreciation at 20% but only from Jan-March for the first year

Jan-March would be for example £10000 x 20% = £2000 x 85% = £1700 divided by 12 and multiplied by £425.00 claim for that year

April 2010 - March 2011 would be £8000 x 20% = £1600 x 85% = £1360

Of course you can claim the mileage for the balance of the first year and for both years the same percentage based on your petrol, tax, services, car wash, valet, MOT etc.

If the IR come around and audit you need to show your workings of the % to 85% so make sure that you keep all receipts and an accurate mileage count.

As to the interest, give the IR a call because I think you can claim 100% of it. Please let me know as I am just doing the same.

Need anymore help, please call out

[Carol M]

Thank you Debbie,
I have tried many times to get through to speak to someone at HMRC, I always seem to be on hold for ages. Will try again tomorrow as I only have 1 lo and he sleeps for 1hr after lunch.
If I get an answer I will post here.
Carol xx

[Carol M]

Still not managed to talk to anyone!!!!
Think my best bet is call in half term when I am not working then I can sit and HOLD all bloomin day till I SPEAK TO SOMEONE :angry:
Can you tell I'm getting a little peeved?
Carol xx

[Helcatt]

So are you claiming mileage or capital depreciation?

I have been doing it as mileage, as that was on the old car!

I have dithered and so far not done anything car related yet for this year, we bought the car in march

HX

[Chatterbox Childcare]

I have been doing it as mileage, as that was on the old car!

I have dithered and so far not done anything car related yet for this year, we bought the car in march

HX

So you will have to make the decision quick as it was in the last tax year and not this one.