Messed up with food claims

**Rick** · 06-09-2012, 07:40 PM

Originally Posted by MrAnchovy

You can charge (i.e. send parents a bill) for whatever you want*, but that is not what we are talking about here, we are talking about including the cost of snacks in the allowable expenses you deduct from your income to arrive at your profit which you pay tax and class 4 NI on (if it is over the thresholds). This is commonly called 'claiming' but as dette pointed out this is not really the right word either. The cost of snacks, food, nappies, wipes and anything else used up caring for children you are paid to look after are all allowable expenses, although if part of the things you buy is consumed by your own family you cannot claim for that part.

Note that the amount you charge parents for these items, if any, does not have to be the same amount that it costs you, but the amount you include in expenses must be (the correct share of) the cost.

* actually that's not true, for instance you can't charge parents for using your car to take children to and from school unless you and the car are licensed for hire or reward

Having read the entire thread, can I just clarify two things.
1. some people are allowing x amount for lunch, y amount for dinner etc. Is this just what people are charging parents or is this what is going in the accounts? Obviously it's a lot easier making an estimate of the amount to go into your accounts and multiplying by number of children and days, rather than trawling through receipts with a calculator!

2. Do childminders have to keep food receipts as proof?
Thanks

**Chatterbox Childcare** · 07-09-2012, 07:28 AM

Originally Posted by Rick_Knight

Having read the entire thread, can I just clarify two things.
1. some people are allowing x amount for lunch, y amount for dinner etc. Is this just what people are charging parents or is this what is going in the accounts? Obviously it's a lot easier making an estimate of the amount to go into your accounts and multiplying by number of children and days, rather than trawling through receipts with a calculator!

2. Do childminders have to keep food receipts as proof?
Thanks

Hope this helps:

1. I believe it is what they are putting in their accounts as expenses. You don't have to trawl the receipt. If you have the same amount of children do it once a month, take off anything that isn't childminder related and use the balance. You will be amazed at how much you can claim.

2. Yes anything over £10 for HMRC and you should be keeping them as the Environmental Health will want to see them if you have food poisoning

**BlondeMoment** · 09-09-2012, 10:36 AM

Originally Posted by Rick_Knight

Having read the entire thread, can I just clarify two things.
1. some people are allowing x amount for lunch, y amount for dinner etc. Is this just what people are charging parents or is this what is going in the accounts? Obviously it's a lot easier making an estimate of the amount to go into your accounts and multiplying by number of children and days, rather than trawling through receipts with a calculator!

2. Do childminders have to keep food receipts as proof?
Thanks

This is what I'm putting in my accounts book. I don't charge parents for meals as I like to just do an 'all in' hourly fee.
At the end of each week I enter the amount of meals that have been given out and enter the receipt (I give them a number so I know which one I'm referring to). I'm now entering meals at £2.75 each.

We have to keep all food receipts anyway just in case there is ever a case of food poisoning. I just enter my receipt for the food shop that week but very often we're still munching from the week before's shop so entering one each week is just a way of organizing it so it makes sense.

**Rick** · 14-09-2012, 12:20 PM

Originally Posted by BlondeMoment

This is what I'm putting in my accounts book. I don't charge parents for meals as I like to just do an 'all in' hourly fee.
At the end of each week I enter the amount of meals that have been given out and enter the receipt (I give them a number so I know which one I'm referring to). I'm now entering meals at £2.75 each.

We have to keep all food receipts anyway just in case there is ever a case of food poisoning. I just enter my receipt for the food shop that week but very often we're still munching from the week before's shop so entering one each week is just a way of organizing it so it makes sense.

Thanks, I think that would be easier and as you said earlier, it's difficult if you or your family eat some of the food bought for your business!

Where did the amounts come from e.g. £2.75? Can you set it at whatever you want (within reason). If so is it possible for HMRC to come back to you and say it is too high?

What is it you charge again, £2.75 for lunch, £2.75 for tea? And snacks?

Thanks

**Chatterbox Childcare** · 14-09-2012, 01:36 PM

Originally Posted by Rick_Knight

Thanks, I think that would be easier and as you said earlier, it's difficult if you or your family eat some of the food bought for your business!

Where did the amounts come from e.g. £2.75? Can you set it at whatever you want (within reason). If so is it possible for HMRC to come back to you and say it is too high?

What is it you charge again, £2.75 for lunch, £2.75 for tea? And snacks?

Thanks

You need to make your own calculations based on your expenses and be able to justify it to the HMRC. For example, you couldn't have food receipts totalling £100 for the week and claim £150.

**MrAnchovy** · 14-09-2012, 04:24 PM

Originally Posted by Rick_Knight

Where did the amounts come from e.g. £2.75? Can you set it at whatever you want (within reason). If so is it possible for HMRC to come back to you and say it is too high?

You need to cost out the ingredients for a few sample meals that you provide and take an average. If you are inspected and HMRC think the amount is too high, take them through the costings.

Somebody who claims £5 for tea and has this costed out accurately (Organic chicken breasts 3 for £4.50 = £1.50 each, 2 portions organic vegetables 200g @ £2.50/kg = 50p, 250ml smoothie @ £3.60/l = 90p...) is likely to be be more successful in an inspection than someone who claims £2.75 'because that is what the school charges for lunch'.

Note that the only cost you can include is for ingredients, not your time (because the money you get for your time is earnings you pay tax on) or energy (because you claim this anyway).

TheBTeam · 15-09-2012, 07:01 PM

I do a set meal price and then check this every three months to the amounts i am spending on food/the number of people eating it, just to check that the two are broadly in line.

I had a great shock today when i realised a little slice of ham was actually 30p, and that was on special price for buying two packs, 10 slices £3!!!!!

**scottishlass** · 25-10-2012, 11:15 AM

Hi

I know I am a bit late in seeing this thread but hopefully someone will spot my post!

I am currently looking at what I want to charge etc. I am thinking of charging the parents for meals on top of their hourly rate, does this mean that I then do not/can not claim for food expenses? Is it that you can only do one or another?

Sorry if I am sounding a bit daft!

**rickysmiths** · 25-10-2012, 01:17 PM

Originally Posted by mum24

I thought that we could not charge for snacks - I am sure I read this somewhere, but cant remember where at the moment.
I charge for other meals and tot it up at the end of the month, pretty much as many others, and I do charge if I buy something special for a treat.
I haven't been charging though for all the fruit we go through in a day, sometimes quite a bit as they eat that mid morning and then when we get in from schol run.
I will have to go back and re do my sums

No you can put down the cost of all food the minded children eat in your expenses.

**rickysmiths** · 25-10-2012, 01:24 PM

Originally Posted by scottishlass

Hi

I know I am a bit late in seeing this thread but hopefully someone will spot my post!

I am currently looking at what I want to charge etc. I am thinking of charging the parents for meals on top of their hourly rate, does this mean that I then do not/can not claim for food expenses? Is it that you can only do one or another?

Sorry if I am sounding a bit daft!

Yes you can put your food costs in your expenses but you have to enter the charge made to the parents for the meals in your income. This is one reason I have always included meals in my fees charge. Also I can't be bothered to work out if a child is off sick or for an un expected day when I have already bought and maybe prepared their food but can I still charge for their meals, I can also see some parents being a pain over it? Much easier to have an all inclusive price.

**Rubybubbles** · 25-10-2012, 02:16 PM

I now ask parents to provide all main meals and I provide snacks, I have a cupboard just for childminding and put all fruit, breadsticks, buy different bread than hubby eats (he has white, kiddies have wholemeal) rice cakes ect ect and any extras stuff such as wipes, flour for making play-dough, food colouring (I seem to get through loads with childminding lol!) this has made things much easier, I also do try separate them from my own shop and pay so all on one reciept. extra top ups always get highlighted and popped into my clipboard.