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bubbly
17-05-2008, 01:01 PM
Can anyone help me please?

Since I began minding I've been paying my gas & elect by monthly direct to Npower. I've broken this amount down into weekly expenses and put it through my accounts according to the hours I've worked i.e. I deduct 33%, 17% or 25% according to my hours.

Today I've been 'kindly' informed by Npower that I owe an extra £554.57. I want to pay it in one lump sum but how do I put it through my books? What I mean is, do I just assume I can deduct 33% (full-time hours) from the £554.57 for expenses? I don't know what % to deduct as my hours were all over the place for the past 6 months.

I'm totally confused when it comes to applying what % I should deduct when you receive a bill in one lump sum.

I can have the £554.57 added onto my upcoming direct debits but that will put my monthly gas/elect bill up from £85 to £169 per month. I just can't afford to pay that sort of money every month and it's doubtful I can continue minding. My water bill just increased from £22 per month to £62. I can't afford to work from home if this continues :panic:

Cammie Doodle
17-05-2008, 04:19 PM
Hi Bubbly not sure on % but Carolyn and I have had probs with Npower setting up DD and not sending bills for 6 months so now both of us have oustanding bills :angry: We have both complained

Just had a though could you go back to your accounts and re calculate amounts ? ie add £554 to your monthly payments then divide that over the 12 months ? (hope that makes sense?)

bubbly
17-05-2008, 05:57 PM
Just had a though could you go back to your accounts and re calculate amounts ? ie add £554 to your monthly payments then divide that over the 12 months ? (hope that makes sense?)

Thanks for your reply June.

I've just done my tax return so I can't recalculate for the year just gone. I'm thinking of paying it in a lump sum but adding the £554.57 onto the £85 per month I already pay and calculating the % over the 12 months of this financial year.

Does anyone know if that's how I should work it out?

sarah707
17-05-2008, 06:37 PM
It doesn't matter how you work it out ... you have paid the money, so you need to put the 33% through your books (for full time)... that's an allowable deduction.

You can put through a lump sum or you can drip it through, up to you - at the end of the year, it will all be there.

Does that make sense? :D

bubbly
17-05-2008, 06:57 PM
Sarah,

So I'm ok to literally deduct 33% from the full £554.57 in one go? I'd rather just do one calculation than drip it through but my varying hours of work bothered me.

sarah707
17-05-2008, 07:22 PM
If it's from last year's bill then you can use the average from last years figures... so if you worked an average of 30 hours a week over the weeks this bill relates to, then go with 25% / 35 hours a week is 29% etc... that would be a fair way to do it and one which is following the guidelines here -

http://www.hmrc.gov.uk/manuals/bimmanual/bim52751.htm

miffy
17-05-2008, 07:26 PM
Just put a note on your accounts showing how you worked it out - this will serve as a reminder to you if HMRC ever question it.

miffy xx

bubbly
17-05-2008, 10:27 PM
Bloomin' heck, after a mammoth task I have calculated I worked a total of 771.5 hours between Dec 3rd 2007 (when I began minding) until April 21st 2008 (a period of 20 weeks). The bill covers the period 18th Oct '07 - 18th Apr '08 for electricity and 23rd Oct '07 - 23rd Apr '08 for gas.

Therefore I divided 771.5 hours by 20 weeks and reached an average of 38.57 hours worked per week.

Based on that calculation I assume I can deduct 29% off my £554.57 bill which equals £160.

Sarah, am I right? You know all about these awful calculations :panic:

sarah707
18-05-2008, 06:36 AM
Looks good to me! :D

bubbly
18-05-2008, 09:02 AM
Looks good to me! :D

Thankies :)

The sheer relief of it all! :D

miffy
18-05-2008, 09:50 AM
Glad you got it sorted - still say keep a note of how you calculated it but then that's because I've got a memory like a sieve

miffy xx

bubbly
18-05-2008, 12:34 PM
Glad you got it sorted - still say keep a note of how you calculated it but then that's because I've got a memory like a sieve

miffy xx

I took your advice Miffy and have a Post-it stuck to my accounts page with my workings-out :)