Expenses help please
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  1. #1
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    Default Expenses help please

    Hi all

    I read somewhere that we can claim up to 2/3rds of out income as expenses, but can't find where as deleted my favourites list off the pc!! Is this right or is there a set amount etc. I am asking as I am in am week ten of minding and my expenses are still high aprox 2/3rds. Sometimes more sometimes less. Don't have many big expences left but still need to get a double pram and finish the garden off.

    I don't want to claim every penny I can as there are things that haven't even gone through my books yet like wear n tear, toddler fees, buses etc. Just would like to know what I am ALLOWED.

    How long did it take you to settle your expenses down to smaller amounts?

    Would appreciate some help on this please if anyone can help

  2. #2
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    You can only put down things that you genuinely use for minding. Expences vary between childminders. Many minders have higher than 2/3 expences and many lower. Quite often you do not make a profit in the first year due to the expence of buying equipment. People quote the 2/3 expences as a level where HMRC may become suspicious, however they do not expect business to make profit in the first year or two. As long as all your expences are genuine then it is fine.

    Generally the more mindees that you have at one time the lower the expences as a proportion to income can be. As you only claim one mileage amount, one gas/elec/rent/water/council tax rate.

    SO if you have one child for 8 hours on a day those expences would be the same as if you had 6 for 8 hours on a day in the holiday. the thing that would change is food & water & entrences on days out IYSWIM.

    I re-registered in Nov 2008 and made a loss that year as only working about 8 hours a week for 1 child an start-up costs for4 1/2 months. The next year I only worked about 8 hours a week with 1 child most of the year so I still made a loss but nearly broke even (lot of travelling to NVQ course). This last year I am in profit . Will be more so if this year continues as it has started
    Last edited by tulip0803; 12-05-2011 at 07:07 PM.

  3. #3
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    Think I may get an accountant. I have only put childminding things through, for example j bought a new camera but as it wasnt just for childminding I didn't put it through. Most of it is toys and multicultural/inclusive resources and books. Books are so expensive when they are linked to multi cultural/ inclusive.

    I haven't put all my food cost through as can't be bothered with the odd pennies here and there, haven't claimed for milk. But I do take my mindees out a lot so have higher transport costs as don't drive, zoo/museum/softplay/sealife centre/farm entrances etc it all adds up(I take off for my daughters costs) for example I have just got the mindees and me tickets for mr tumble, but haven't claimed mine or my daughters, just mindees.
    Is it acceptable to take them out this much?

    I have one full timer and 2 part timers so I think the expenses are justified buy doubting myself now after something that was said about my high expenses

    Just want to make sure I am doing it all right,

  4. #4
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    Hi ,
    It's perfectly normal to have high expenses: HMRC expect you to have up to 2/3 of your income claimed as expenses in a normal year. In the first year you are highly likely to make a loss, on paper at least. Everything you spend you are entitled to claim for, so don't pay it again in taxes

    I always claim for food, as it all adds up and at the end of the day, you'll pay less tax.. Why not claim?! You have to keep receipts anyway - it only takes a few minutes to work out roughly what proportion of your grocery bill you can claim.

    Housing benefit and income support etc all assume 2/3 of your income from childminding as expenses also.

    hope you're feeling better about it now anyway,

    best wishes,
    Wendy

  5. #5
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    I would claim for you ticket or entrance fees when you take the mindees out - after all they're not going without you!

    Miffy xx
    Keep smiling!

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    Quote Originally Posted by miffy View Post
    I would claim for you ticket or entrance fees when you take the mindees out - after all they're not going without you!

    Miffy xx
    Agree - You are able to claim your own entrance fees to places as it is a business expence

  7. #7
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    Thank you all, just wanted to fond somewhere where I is writtern down about this 2/3 rds rule but can't, never mind. Having thought about it overnight it's my new business and I will spend what I need to spend to ensure my mindees get what they need, every single thing I have bought I have the reciept for and can justify so I am going to stop stressing about it. Just because someone else things my expenses ar too high doesn't mean I am doing it wrong. It's my business and I will run it my way

    Thanks

    Jac x

  8. #8
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    Oh and I am going to sit down at the weekend and put everything through that I have missed out like wear and tear etc. Have printed the list off from free down loads! Thanks again x

 

 

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