HMRC Update - from April 2013

[Chatterbox Childcare]

New HMRC Information regarding accounts – Looks as though this came in from April 2013.

BIM52751 - Care providers: childminders: expenses

I have looked through the sheet and there are two differences which stand out:
1. Receipts are not required for items costing less than £10 (we already had this).

The change is receipts are required if a number of smaller items are purchased at one time and the total cost is £10 or more.

2. Start Up Grants – if you receive the grant after you register and commence business then the amount goes into your accounts as do the expenses. Http://www.hmrc.gov.uk/manuals/bimmanual/BIM46355.htm

There is a change here and my interpretation is that if you get the grant before you register and commence business, then the grant does not go into your accounts and be taxed. However, it doesn’t state what you do about the expenses that you used the grant for. BIM40455 - Specific receipts: grants and subsidies: government, local authority and EU grants

Please note that these are my interpretations of the new rules (please use the links for reference) and as they are not altogether clear, I would urge anyone unsure of the content to contact either their accountant or an HMRC advisor for clarification.

[bunyip]

Thanks for that.

The change on receipts rather begs the question: how do HMRC know we bought several items at the same time if there isn't a receipt to show that we did?

[shortstuff]

thanks for the update x

[hectors house]

I thought the rule always was if you buy several items and the total comes to over £10 you needed a receipt - but like Bunyip says if you haven't got a receipt showing a date who is to know that you bought them at the same time, from the same shop or person!

[Rick]

I thought it was also previously the case that a total amount over £10 needed receipts.

This file in Free Resources may also help. It is the up to date HMRC document

http://www.childmindinghelp.co.uk/fr...-2013-2014.pdf

[ja-lula-belli]

Great thread thanks for the update. Accounts is confusing at the best of times. Lkl

[cathtee]

Thanks for the update

[sarah707]

Thank you for keeping us on our toes Chatterbox

[chriss]

and the receipts fade after a few months anyway so who will know what you bought and how much it was anyway

[Kiddleywinks]

Whilst I agree it's a little amount to be claiming for, lots of little amounts can make a big difference!
If what's being claimed is legitimate, even a faded receipt is better than none

[Chatterbox Childcare]

Just keep the receipts, it is the HMRC responsbility from thereon in as we have done our bit by keeping them

[appletart88]

Thank you for this, very helpful :-)
Quick question if I buy childminding bits with my personal shopping can I just highlight these on the receipt or should u get two separate? Ta

[sarah707]

Thank you for this, very helpful :-)
Quick question if I buy childminding bits with my personal shopping can I just highlight these on the receipt or should u get two separate? Ta

I highlight the relevant items

[WibbleWobble]

I keep ALL my receipts as i forget what i have paid for. Even if its only a couple of pounds...

it means i get all the tax back

wibble the tight x

[*daisychain*]

Thank you for sharing