please please help newbie cm confused

**babybluebell** · 23-10-2014, 04:23 PM

Hi everyone I only started CM this week 3 mindees 2 siblings 16hrs per week and 1 other child 16hrs per week also and I am getting myself in a right tizzy trying to get my head around working out my tax, percentages, expenses and all that for example how is heating and electric expenses worked out is it how much you put in electric per week with a weekly percentage taken off or is it weekly electric added up for the year then a percentage deducted? How would you work out expenses for oil heating? And as I am starting near the end of the year how would that work when paying my tax? Very very sorry for all the questions I'm just totally confused and not great at maths lol Also I'm from northern ireland not such if that makes a difference with tax and expenses

**catminder** · 23-10-2014, 05:48 PM

Hi, you will find some information to help you under 'book-keeping and accounts' sub section of the forum.
For fuel costs I add up the total cost for the year then work out the % I can claim and divide by 52 to get a weekly amount. That way you can just apply the weekly amount allowable each week you are working.
I hope that helps and I hope all goes well for you. There is always someone here to help if you need any help.

**Kiddleywinks** · 23-10-2014, 06:09 PM

Not sure about oil heating, but would use the same rate as for gas and electric, also not sure about NI to be honest, but will presume it's the same as here

Hours are worked out on actual hours worked m-fr, not per child
eg
Child A attends 20 hours a week (M-Fr 8am -12noon)
Child B attends 8 hours a week (on Mon 8am - 4pm)
Child C attends 16 hours a week (Tues and Thur 9am - 5pm)

So contractually it's 44 hours per week but

Mon actually working 8am - 4pm = 8 hours
Tue actually working 8am - 5pm = 8 hours
Wed actually working 8am - 12pm = 4 hours
Thur actually working 8am - 5pm = 8 hours
Fri actually working 8am - 4pm = 4 hours
Which makes actual working hours 32 per week

Next week, our children are on school holidays, so I am working 66 hours that week, so my hours would be: week 1 x32, week 2 x32, week 3 x32, week 4 x66 = 162 / 4 (weeks) = 40.5 hours a week on average

I pay all my household bills by Direct Debit each month, so I work out my hours monthly, and my deductions on a monthly basis too, because that works for me.
Using HMRC guidelines for household bills @ 40.5 hours a week means I claim the maximum allowed (33% and 10% depending on the bill) for that month.

I do keep track of hours and bills over the course of the year, and to be honest, the difference between doing it annually and monthly is very little for me (about £2 or £3 difference over a 12 month period) so I am happy to continue doing it monthly, but as you are just starting out, it may be worth keeping track both ways to see if makes a bigger difference for you.

As you are starting in the middle of the financial year and during the winter months, you may find that it helps you, as your costs will be higher and so you may find you pay little or no tax. This is quite usual so don't worry if that's the case.

HTH

**babybluebell** · 23-10-2014, 08:08 PM

Thanks so much for all the help and info starting to get my head around it a bit better after doing a bit of homework lol the only other question I have please is do we need to keep receipts for the following things: electric, oil/gas, rent and food?? Thanks

**Kiddleywinks** · 24-10-2014, 06:23 AM

Yes, although food only needs keeping for 6 months as HMRC will accept 'reasonable costs' - I keep the receipt I use to calculate food costs as evidence as what's reasonable for one peron isn't for another lol

**babybluebell** · 24-10-2014, 12:52 PM

Originally Posted by Kiddleywinks

Yes, although food only needs keeping for 6 months as HMRC will accept 'reasonable costs' - I keep the receipt I use to calculate food costs as evidence as what's reasonable for one peron isn't for another lol

thanks for your reply appreciate it do we also have to send all the receipts with the tax return to hmrc ? I dont have an electric or heating bill as I use metres to pay as i need it so im just thinking its going to be a lot of receipts ill be sending lol

**Kiddleywinks** · 24-10-2014, 10:52 PM

As explained on your other post, you need to keep receipts, but you don't need to send them off.

Keep the receipt showing the amount paid to go on your meter, then add it all up either weekly/monthly so you get a total for that week/month