Wear and tear question

[hollyberry]

Is this just a straight 10% off your net profit/gross profit????

Thank you oh wise ones! xx

[Chatterbox Childcare]

No it is 10% of whatever income you have relating to childminding, whether it be monies received or monies owed. If you have monies owed at the end of the year add it into your income and remove it from the following year.

I include: invoiced money, grants, tutoring etc...

[christine e]

You take the 10% off your gross income

Christine

[jadavi]

Are you doing this monthly or at the year end?

[hollyberry]

I was considering putting it in monthly as it then equates to all my direct debits for all these costs - does it make a difference when I do it then? xx

[Chatterbox Childcare]

I was considering putting it in monthly as it then equates to all my direct debits for all these costs - does it make a difference when I do it then? xx

no as long as you do it!! Wouldn't want to miss that expense :D

[MrAnchovy]

To be clear, you calculate 10% of your gross income from childminding and add it on to your expenses (you don't take it off your income, although the net result is the same).

[MrAnchovy]

I was considering putting it in monthly as it then equates to all my direct debits for all these costs - does it make a difference when I do it then? xx

That's an interesting comment - anything that you pay monthly by direct debit you can probably claim a proportion of separately. The 10% wear and tear allowance covers replacement of carpets, furniture, kitchen equipment etc.

You can keep records more or less any way you want, as long as you can back up the numbers you write in your tax return (which is just total gross income for the year, total allowable expenses for the year, and the total of any Annual Investment Allowance or other capital allowances for major equipment purchases that are not allowable expenses).

[hollyberry]

To be clear, you calculate 10% of your gross income from childminding and add it on to your expenses (you don't take it off your income, although the net result is the same).

That's what I've done, calculated it in this way and it's shown as an expense figure. Thanks for the clarification.

[hollyberry]

That's an interesting comment - anything that you pay monthly by direct debit you can probably claim a proportion of separately. The 10% wear and tear allowance covers replacement of carpets, furniture, kitchen equipment etc.

You can keep records more or less any way you want, as long as you can back up the numbers you write in your tax return (which is just total gross income for the year, total allowable expenses for the year, and the total of any Annual Investment Allowance or other capital allowances for major equipment purchases that are not allowable expenses).

Are you aware of the NCMA agreement with HMRC with respect to allowing a proportion of gas electric and council tax costs to be claimed? It's a % (the figures of which I have) dependent on how many hours the childminder works. However, i can't seem to find a clear answer on what constitutes 'working hours'. When one is speaking to HMRC re tax credits, they usually ask you to calculate all the hours you work so actual hours childminding, hours doing your books, hours preparing and planning, and so forth. Is it the same for this NCMA matter, or is it ONLY the hours you are ACTUALLY childminding for which count to inform which % you should be working off??? I wondered if you knew the answer to this question - definitively!!??? And you might be able to set me on the right path for what to put in my accounts!! :)

[MrAnchovy]

However, i can't seem to find a clear answer on what constitutes 'working hours'.

That's because there are two different answers! For nearly all purposes, including Working Tax Credit, working hours means all the hours you work - looking after children, clearing up afterwards, preparation, paperwork, training, finding new business, research on this forum etc.

But for the HMRC concession for claiming household expenses, it is only the hours you are actually looking after mindees that count.

[hollyberry]

That's because there are two different answers! For nearly all purposes, including Working Tax Credit, working hours means all the hours you work - looking after children, clearing up afterwards, preparation, paperwork, training, finding new business, research on this forum etc.

But for the HMRC concession for claiming household expenses, it is only the hours you are actually looking after mindees that count.

Now WHY did I know that was going to be the answer?!!!! lol!!!! :laughing: