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son77
13-05-2008, 07:20 PM
Is my turnover with the 10% wear & tear taken off?

Bit confused because in NCMA accounts book they state total income after you've taken away the 10%.

So am I right that the 10% wear & tear is nothing to do with expenses?

Thank you xx

sarah707
13-05-2008, 07:26 PM
Work out your total income - everything everyone has paid you for minding ... A

Then add up and enter a figure for your expenses which includes food, bills, household expenses and 10% wear and tear (not separate figures, all added together) ... B

A - B = total for tax purposes...

If you have any other income from rents, interest from the bank that is not taxed at source, taxable benefits etc put those in the relevant boxes...

Does that make sense? :D

son77
13-05-2008, 07:33 PM
Yes thankyou

My 10% wear & tear go together with my other expenses.

This is what I thought but the accounts book confused me as it takes off wear & tear then says total income before taking away your expenses.

I thought this was gonna be easy!!

littletreasures
13-05-2008, 07:41 PM
I was told by someone at NCMA that you take off your 10% wear and tear from your gross figure and put that amount down as your gross and then deduct all your other expenses.

Why don't they make these things clear.

littletreasures

son77
13-05-2008, 07:43 PM
Thats how it reads in accounts book, so confusing.

sarah707
13-05-2008, 07:52 PM
I've never done it that way Sonya... my income is simply what I have earned, the rest are my expenses... this is the way I was taught over the years by people from the tax office when I've been on courses and an accountant friend...

If you think that might be right then I'd wait and ring them tomorrow...

Though tbh it's not going to make a big difference to the end result. They only look at your final figure after deductions and decide whether you need to pay tax or not... the rest is to check you're making sensible deductions eg if you lose 90% of your income to expenses you can probably expect a query!

Not sure what to say... up to you! Just wish they'd all sing from the same hymn sheet sometimes :rolleyes:

son77
13-05-2008, 07:57 PM
No Sarah, I will go with your way.

I know you are experienced (I didnt say old :laughing: ) & I completely trust what you say.

Another question, am I exempt from paying class 4 NI?

I only pay class 2 so I am confused again!!

son77
13-05-2008, 07:58 PM
Sorry Sarah, hope that didn't seem rude :panic:

sarah707
13-05-2008, 08:03 PM
:laughing: I feel very old tonight! The wine is helping though! LOL

I don't pay any NI as my children are still at home so I am exempt and I have a certificate to state that ... but no you only need to pay class 2.

I did a pension forecast check last year and I am still getting the full state pension, so I don't see any point in paying anything extra. It's not going to suddenly get me more money. :D

son77
13-05-2008, 08:06 PM
I have 2 children at home but still pay NI.

As you can you tell, I dont really understand how all this works!

son77
13-05-2008, 08:10 PM
Oh my, have just come to the part about banks etc & interest, I am now more confused than ever.

May have to get hubby to have a look.

sarah707
13-05-2008, 08:36 PM
Bank interest can be paid in 2 ways - tax deducted at source or tax paid on the interest and you put it through your books (does not apply to ISAs).

If tax is paid, you will have filled in a form R something to say you do not pay tax and do not want your tax deducted... do you remember filling that in??

If you have not yet paid tax on your interest, you need to add it all up and put it on your return ... Tax office add up

income (after deductions) + bank interest where you've not paid tax + any other taxable income ... if this is over the £5+k threshold, you are liable to pay tax...

Hope that makes sense - I am now half way down a rather nice bottle of white! :D

crazybones
13-05-2008, 08:37 PM
:laughing: :laughing: Can I deduct then because my account never pays tax because it is always in the red.:blush:

son77
13-05-2008, 08:51 PM
Some of my accounts tax gets deducted, but my current account I get no tax deducted but my interest is only 1p per month approx.

Surely they dont want to know all this?

Quote from SA help

UK bank, building society, unit trust, etc interest/amount already taxed
You will usually receive your interest etc after tax (at 20 per cent) has been taken off (deducted) by the payer, for example, the bank or building society or unit trust manager. What you need to enter is the net amount,(that is, the interest etc after tax was taken off) the amount that actually increased the balance in the account.

So they want to know every penny?

Sorry but im flapping now.

sarah707
13-05-2008, 08:57 PM
They can't have you diddling them now can they! :laughing:

son77
13-05-2008, 09:05 PM
This is rediculous, I must have about 10 different banks accounts & to work out how much 'interest' I've earned from each one is going to take ages & won't even add up to much.

I thought they didnt want to know when you've been taxed already but they still do :angry:

sarah707
13-05-2008, 09:11 PM
I must admit I don't get that one either... though I don't pay tax on my accounts so I just put the whole figure through.

Maybe before next April you need to streamline your banking?? :laughing:

son77
13-05-2008, 09:19 PM
Yes down to just 1 account I think.

I hope they dont try to tax me on what I've been taxed for already, buggers!