how much do i tell tax credit im earning

[nelly]

hi everyone, im stuck yet again dont know what figure to tell tax credits,do i tell them the hole amount earned for the year or with my dedutions took off.thanks peeps

[Hebs]

it's the ammount after your allowances

[sandy64]

yep its the net profit

[nelly]

what amount do i take off then because this is my first year of childminding.im so scared of getting this bit wrong . thanks

[Hebs]

first of all you take off 10% for wear and tear

then you start deducting any expenses you have had x

[Graham]

Make sure you get as accurate an amount as you can and keep them informed straight away if your wages go up, otherwise they will overpay you and demand the overpayment back and it can come as a bit of a shock.

[clio0602]

Hmmm yes I'm stuck on this one as I apparently owe them almost £3000 from previous years and, although I keep them up to date with everything and they reducing my payment, it hasn't gone down in 3 yrs

Anyway I told them £5000 to begin with but with all my start up costs and expenses its going to be nowhere nr this. Not going to change it tho as this yr they may end up owing me and reduce the £3000 x

[Chatterbox Childcare]

Is this your first year completed? i.e. 09/10 or are you just going into your first year? 10/11

Either way ring the tax credits and explain to them your figures and they will help you. As long as you are registered you can back claim so don't leave it too long otherwise the claim with start when you first register with them

[Cazz]

I started minding in November and told them the figure that I was going to be earning. When 2 mindees went from 2 days to 1 - I didn't inform them of the reduction as I was told it's better to over estimate it so you don't end paying them back. I'd also forgotten that I would have some expenses coming off so that wouldn't have been my actual figure anyway!

I've been very quiet for the last few months so was pleased when my renewal was calculated and we are now getting nearly £50 a month more because my actual income was less than I said and this is helping to "tie us over" until things pick up. (I have an after school term time only contract so only have 1 child for 7 hours on a Friday throughout the school holidays and a child alternate Tuesday evenings for 3 and a half hours).

I should be earning more from October and will probably inform them of some of the increase but not all because I'm going to be better at putting expenses through this year and losing some income!!

Someone at Tax Credits told me that you can phone them each month and advise them what you will be earning as things change so much in this job. He also told me it's best to over calculate than under calculate.

[Beckieboo]

I over estimated last year, as i didnt have a clue, anyway i earned alot less than that and got a payment , that has never happened to us, anyway this year i have told them 6000 and if my accounts start nearing that i will give them a ring!!