How much tax do I pay?

[vix84]

Hi, first year doing this and Ive lost the link I had telling me how much tax to pay on the income! Something like 10% for first however much, and then 22% etc.

I nannyed from April 07 to Sept 07 - so that was a gross of about £1000 a month so I expect they used all my tax free allowance.
My net amount for C.minding October till April 08 was £6223.47 - so does anyone know how much tax % I will pay? Trying to get a rough idea of how much to put aside, I thought it was 22% but could be wrong!

[sarah707]

This is the link for expenses... is this what you mean?

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

[cloud9]

Hi, first year doing this and Ive lost the link I had telling me how much tax to pay on the income! Something like 10% for first however much, and then 22% etc.

I nannyed from April 07 to Sept 07 - so that was a gross of about £1000 a month so I expect they used all my tax free allowance.
My net amount for C.minding October till April 08 was £6223.47 - so does anyone know how much tax % I will pay? Trying to get a rough idea of how much to put aside, I thought it was 22% but could be wrong!

You are probably looking at about £1700 i think??

[sarah707]

Didn't the threshold change for this year? I am sure Pauline's or Dee's post said it was backdated...?

Hmmm can't find the link, sorry! Hopefully Angel will know where it is later :)

[Pudding Girl]

for up to date info ( although not yet put on about last weeks £600 thingummy re the hoohar over the 10% tax band)

see here..

http://www.hmrc.gov.uk/budget2008/pn02.pdf

page 1 of 14 is what you want, second table

HTH

[Pauline]

My net amount for C.minding October till April 08 was £6223.47 - so does anyone know how much tax % I will pay? Trying to get a rough idea of how much to put aside, I thought it was 22% but could be wrong!

Your net income from childminding was £6223.47 for 7 months childminding???? Sounds a lot to me, some minders only make that as GROSS in a year.

Are you sure you have done your expenses correctly? Or perhaps you have loads of children?

:)

[vix84]

I will double check later but sure it was net, I normally get around £1300 income for 2 mindees, and then just have the weekly trips to toddler groups, food, and other normal expenses.

I am going to make an appointment to see the people at tax office in a couple of weeks so will let you know then how it all works out.

Thanks for the links - Im also guessing we still go by the tax rates for the year 2007 to 2008 instead of using the new ones that have come in otherwise that would be really unfair!

[vix84]

Also, I pay my ni monthly - is that an expense? I didnt deduct that from expenses

[Pauline]

I will double check later but sure it was net, I normally get around £1300 income for 2 mindees, and then just have the weekly trips to toddler groups, food, and other normal expenses.



When you say normal expenses do you include gas, electric wear and tear etc?

It's just that to me, a gross income of £1300 a month for 7 months I would expect your net to be more like £3500.00 not £6000,00 like you mentioned earlier. I would have a good look at what you can claim as expenses if I were you, you don't want to be paying unnecessary tax! :eek:

[Pauline]

Also, I pay my ni monthly - is that an expense? I didnt deduct that from expenses


Not sure on that as I don't pay mine, I opted for the exemption certificate.

But I suppose you would pay NI even if you were an employee so perhaps you can't claim it as an expense - perhaps others will say what they do. :)

[deeb66]

Not sure on that as I don't pay mine, I opted for the exemption certificate.

But I suppose you would pay NI even if you were an employee so perhaps you can't claim it as an expense - perhaps others will say what they do. :)

Pauline is right....

You cannot claim NI as an expense

[sarah707]

One of our members put her figures through last year and didn't realise all the things she could take off as expenses... especially the things she spent under £10 (for which you don't need expenses) like magazines, entrance fees, ice creams, wipes etc...

She asked the Tax Office if she could re-do her figures and they let her... she found an extra few thousand (yes!!!) in expenses and didn't have to pay tax instead of having a bill ...

So long as you can justify what you have spent as relevant to childminding then you should take it off your total expenses. You might find this thread useful... :D

http://www.childmindinghelp.co.uk/forum/showthread.php?t=2734

[vix84]

I deduct gas/electric/tax/water etc. car park tickets, entrance fees, materials and resources, car boot toys, meals out, mileage for everywhere, broadband, food etc........everything I can think of really

Just looking at accounts -
Gross income = £8660.46, - 10% wear and tear, Income = £7794.41
Expenditure - £1570.94 = Net profit = £6223.47
September Income = £269.75 Exp. = 622.24
October Income = £1486.58 (had 3 mindees that month instead of 2) Exp. = 94.28
Nov. = £1536.13 (2 mindees) Exp. = 118.40
Dec = £1439.00 (2 mindees) Exp. = 95.44
Jan = £1357.20 (2 mindees) Exp. = 177.92
Feb = £966.20 (2 mindees) Exp. = 172.83
March till April = £1605.60 (2 mindees) Exp. = 230.53 + 59.30

I have one mindee 5 days, and 1 mindee 3 days and charge about £40 a day - even if they go early. Maybe I charge a lot more than most!

[vix84]

PS - I didnt put down car insurance as I wasnt charged any extra - and would have had car insurance - even if I wasnt minding. Do you all claim for car insurance and how much?

[Pauline]

I have one mindee 5 days, and 1 mindee 3 days and charge about £40 a day - even if they go early. Maybe I charge a lot more than most!

If you can get it charge it! It all depends on area though as to how much you can charge.

As regards car insurance, you can only put down any extra that you are charged for business use.