Newbie with no idea

[newbie1512]

Hi there,

Im in pre-reg stage and ive had my visit ect so now im looking at my income/expenditure and getting a little concerened.

I have seen that some people are either breaking even or making a loss each month/year and this is concerning me a little.

In my head I have roughly worked out that apart from my start up costs, currently at around 700 this includes courses, materials ect, I should make a profit each month, by the time I have taken a little out for tax and NI, food (which surely cant be that much, and I will charge for it monthly).

Im not going to use my car, but I know I will probably need materials for planning activities each week

Am I being thick and missed something huge??

Id appreciate any help

[Chatterbox Childcare]

Because you can claim some expensese that are your household costs you can make a loss. i.e rates/elec/gas

You will need to include in your expenses as much as possible all you can so on paper you make very little and pay little tax.

Have a look in the downloads section at all that we think is achieveable

[Mrs.L.C]

It is possible to make a loss at the start untill you get established and this is because you can claim a percentage of gas/ele, water, your income as wear and tear, equipment etc so it does look worst on paper but the plus is you wont pay any tax but when you look at it over the month its not that bad.

Once work really starts coming in (this varies area to area) you will notice a difference and more than likely you will gain a profit esp after the first year (that if you dont in the first year)

But remember to claim everything possible as expenses to bring your tax bill down :)

[MrAnchovy]

Bear in mind that you don't pay any Income Tax or Class 4 National Insurance on the first part of your profit (The thresholds are £6,475 Tax and £5,715 NI in 2010/11 and go up to £7,475 Tax and £7,225 NI in 2011/12). I think that some people say they don't make any profit when they actually make over £100 a week profit but don't pay any tax because they are below these thresholds.