1st Tax Return Query

[Pandypops]

Hiya - I have just submitted my 1st tax return and I found it really easy and this has thrown me a bit as to if I have done it properly.

I set out my income and expenses every month, so I knew what the final amounts. I literally just added those and nothing else as I don't have any other income. I put all the things I bought at the beginning as expenses.

Is this OK? Should it be more involved?

What is the likelihood of being audited by the taxman - is it just a random pick??

Thanks!

[Nikki125]

ooooo I need to do my first one soon, scary. Glad you found it easy, hope i do to.

[MrAnchovy]

Wow, the system only went live at 0600 this morning - you must be one of the first!

It doesn't have to be complicated so I am sure you have done everything OK. Just a few additional pointers:

Any big items of expenditure (laptop, expensive outdoor play equipment etc.) should not be included as 'expenses', there is a separate box 'annual investment allowance' for these - they are still set off against your profits so you pay less tax and Class 4 NI.
If you have a mortgage and you don't look after your own children while you are childminding you may be able to claim substantially more expenses for use of your home than the HMRC concession allows. I would recommend talking this over with an accountant if you think you might be in this position.
Whilst claiming 45p a mile for business mileage is simple and best for most people, if you have large expenses for running a car you might be able to claim more expenses on an actual basis, particularly if both your business mileage and private mileage are low. Again advice from an accountant is a good idea.


Only a small percentage of returns are selected for further enquiry by HMRC, they are selected using a top secret 'artificial intelligence' :D

[sweets]

mines all done and dusted too :laughing:

It is very easy! the first time i did my own i set aside a whole afternoon to do it and was dreading it!

if you have your figures ready it takes about 20 mins! lol

[jumping j]

glad to read this, I've got all mine on the conputer ready to do but was a bit worried about actually doing it, don't want to leave it too late tho as I have a few childminder frineds who left it til the last minute and spent 2 weeks panicing and doing nothing else!!!

[Pandypops]

Wow, the system only went live at 0600 this morning - you must be one of the first! I only got the letter this morning so I logged on straight away, I didn't realise it had only just opened!

It doesn't have to be complicated so I am sure you have done everything OK. Just a few additional pointers:

Any big items of expenditure (laptop, expensive outdoor play equipment etc.) should not be included as 'expenses', there is a separate box 'annual investment allowance' for these - they are still set off against your profits so you pay less tax and Class 4 NI.I had most big things from my own child, expenses were for safety gates, toys etc and nothing too expensive
If you have a mortgage and you don't look after your own children while you are childminding you may be able to claim substantially more expenses for use of your home than the HMRC concession allows. I would recommend talking this over with an accountant if you think you might be in this position.I don't have a mortgage and I look after my own child :)
Whilst claiming 45p a mile for business mileage is simple and best for most people, if you have large expenses for running a car you might be able to claim more expenses on an actual basis, particularly if both your business mileage and private mileage are low. Again advice from an accountant is a good idea.I don't have a car so that's no worry


Only a small percentage of returns are selected for further enquiry by HMRC, they are selected using a top secret 'artificial intelligence' :D


Thanks for your reply - it has put my mind at rest. I don't have any tax to pay this year as I haven't earned enough after my expenses have been deducted :blush:

[MrAnchovy]

If you are using a cot, pushchair, changing table, toys etc. that was bought for and no longer used by your own children you can claim a fair second-hand value for them.

[Nikki125]

I have a mortague and dont have any of my own children and work from home for a 55hr week plus i spent £10,000 converting a disused room in my house to use solely for childminding, however i dont have an accountant. Ive kept up to date with my income/expenditure so was hopeing to get away with not using one. If i phoned the inland revenue would they go through this with me?