Expenses

[childminder54]

How much is your expenses for tax returns mine seem high

[rickysmiths]

My accountant has always said they should be no more than approx 1/3 of total income as a rough guide.

[childminder54]

I thought its 2/3 help

[hectors house]

As long as you have receipts which are all valid for your job as a childminder then you can spend whatever you like - childminders who have just set up and have bought lots of toys / equipment and then don't fill their spaces very quickly may not make any money at all. My expenses normally are 50%.

2/3 of income going as expenses does seem quite high - remember that each time you buy a new book or toy that is your wages you are parting with, maybe look at buying new things from car boot sales or charity shops or asking parents to contribute to toddler group or outings charges.

[tulip0803]

It does also depend on how many children you have each day. Last year my expenses were nearly 2/3 but I was only working 4 days, totalling 40 hours a week, and 3 of those with just one child (£3.50 ph)- this year I am working 5 days and have more children each day and my expenses are working out less than 1/2.

My claim for % heating, % council tax, % water, % elec & petrol is the same but I now have 2-3 times the income.. Where I live also means that I have to drive everywhere (rural village, main road no footpath) so even a trip to the nearest (rubbish) park is a 2 mile round trip, the bank is a 28 mile round trip!

[rickysmiths]

It does also depend on how many children you have each day. Last year my expenses were nearly 2/3 but I was only working 4 days, totalling 40 hours a week, and 3 of those with just one child (£3.50 ph)- this year I am working 5 days and have more children each day and my expenses are working out less than 1/2.

My claim for % heating, % council tax, % water, % elec & petrol is the same but I now have 2-3 times the income.. Where I live also means that I have to drive everywhere (rural village, main road no footpath) so even a trip to the nearest (rubbish) park is a 2 mile round trip, the bank is a 28 mile round trip!

Unless you are working very reduced hours your expenses should be roughly in proportion to the number of children you mind. 40 hours is a full week albeit on 4 days though if you only have one child then all your basic expenses such as insurance, and outing in the car will cost the same for one as it would for 3 registration fees etc. to fall on that child as it were but your food and other costs would be less for only one. I would say 2/3 of your income as expenses unless it is your first year as a childminder is too much and you need to have a close look at what you are spending money on even with one child. Working the 40 hours means you get the full % for all your Utilities even if you only have one child but it doesn't go up any more if you have 3.

I think if I lived so far from everything and only had one child I might ask the parents for a small contribution towards outings.

[Bridey]

Mine have consistently been just over a third for the past 5 years.

[Chatterbox Childcare]

The more money I take the less income to expenses I can claim. Once you have used up your gas/elec etc the allowance is gone.

[karenandsmile]

if you make a loss in that tax year you can deduct it off the next years as a loss carried over there is a section in the tax form to do this

[maisiemog]

Last year my expenses were about 80% purely because I ended up replacing so many things. I needed a new double buggy and lots of older age toys. In that tax year I also passed my driving test so needed to buy three car seats. This year I think they will probably balance out at 50%. I think it depends on circumstances at the time.

[kats]

Mine are always about 50%