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Start up costs and tax
When I had my childminding course we were told we could put our start up costs against the next tax year's income as it was very unlikely we would earn enough the first year to have to pay tax. Can we do this?
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Originally Posted by
Ellisha
When I had my childminding course we were told we could put our start up costs against the next tax year's income as it was very unlikely we would earn enough the first year to have to pay tax. Can we do this?
The tax office advise that you should put your totalled start-up costs through on your first day of working marked startup costs, the receipts should be placed in an envelope also marked start-up costs and stored with your other receipts for that year.
If you make a loss during a tax year you can carry the loss over against the following tax year. Many people do not make a profit in the first year or two due to start-up costs, not filling vacancies etc. So maybe that is what they mean
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You cannot defer the receipt - you must put them in the first year of trading but if you had receipts in this month and you don't start until May 15 you would put them in May 15.
Debbie
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Thanks, that's made it much clearer.
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Originally Posted by
Ellisha
Thanks, that's made it much clearer.
You may already have applied for a start-up grant ...if not please do
It is £250 for cms ...or £500 if you intend to look after disabled children and available until end of December
It is not much but it will help
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