tax office most unhelpful people ever

[tis]

ARGHHHHHH.
Can someone please help me. My daughter has recently become registered and we are working together in my home. Tax office said she can't claim 10% wear and tear because she doesn't buy things for the home. I wondered if I could have all the money from childminding , take off 10% and then give her, her share, but the tax man said she would be an employee then and I would have to become an employer. He was the most unhelpful man I have ever spoken to, just kept repeating the same things again and again instead of answering my questions and trying to help. Has anyone else been in this situation, how do you get on if you take on an assistant, do you have to pay their tax and N.I. and register as an employer, surely theres loads of paperwork and other stuff to do this and are you classed as a buisness ? Not sure what route to take. Any help please.

[sarah707]

You will be much better (in my opinion) to agree an amount to pay her maybe per day or per session she works and take it out of your earnings. That way it comes off your tax liability.

She can only put against her income what she actually spends ... so if she buys magazines, pays for her own minding insurance, does any mileage for the business etc ...

The tax man is right, because it's your house, you are the one who claims the 10% wear and tear and the percentages of all the bills.

Sometimes after calls like that, it's best to wait a day or so and ring again ... you might well get someone more helpful!

Hope this clarifies

[tis]

Thanks Sarah, but do I have to become an emoloyer then and her an emplyee? You say she can claim things she spends, but she wouldn,t be classed as self employed then, would she? Doesn,t it get complicated then.

[Donkey]

I think that she could be a self employed 'contractor'.
so rather than you employing her, she is still self employed but would then have to fill in her own tax returns and be liable for paying her own tax and ni

hope thats right

[sarah707]

Yes that's right - she will be self employed just like you.

She will need to pay her own NI every month and will need to register to get a tax return sent to her in April.

I think that's what the tax man was unhelpfully trying to explain when he said she can't claim for wear and tear etc.

Just a thought ... I wouldn't think you ought to give anyone half of everything after 10%! You've got gas, electric, toys, courses, car etc to pay for yourself which would eat into your 45% if you did it that way.