Tax ? not yet started but have questions

[Donna E]

I am just applying for the briefing session and have high hopes of becoming a child minder. Just one problem I don't know how tax works.

I am used to my company's accounts giving me a wage slip with relevant tax and ni deducated.

Working as a childminder how is the tax worked out and collected. Monthly/yearly. Do I keep some back for the year to pay to them in a lump sum?

Thanks in advance

[cathtee]

When you become registered and start earning a quick phine call to HMRC and notify them that you have become self employed,you have to do this within the first 3 months i think. Go on line and register for self assessment and they will send you a password to set up for filing your tax return at the end of the year. I do mine Dec and it needs to be paid by end of Jan, it tells you there and then what you have to pay, I would save each week for it and the it doesn,t come as a shock at the end of the year.

Sorry have waffled a bit, but i think you can get the gist of what i mean until someone else comes along to give some beter advice. Goodluck:)

[MrAnchovy]

As a childminder you will be self employed. You should register with HMRC as soon as you start earning money (there is no three month grace period any more). You can do this online but the Newly Self Employed Help Line (http://search2.hmrc.gov.uk/kb5/hmrc/contactus/view.page?record=1JNuf06zzrM) are usually one of the more helpful parts of HMRC so give them a call when you have a start date for your first mindee.

If you start working before April 2013, you will have to fill in a tax return for your income and expenditure up until then. If you do this online it will work out how much tax and NI you have to pay, but you won't have to pay it until January 2014.

You also pay a small fixed amount of National Insurance (currently £2.65 a week) monthly or six-monthly by direct debit. This entitles you to Maternity Allowance, credit towards the Basic State Pension and some other benefits.

[Chatterbox Childcare]

Firstly - don't panic!

You have been given good advice on how to register but the business side is down to you unless you want to get an accountant which, if you are good with figures you don't really need.

I would advise getting an NCMA accounts book for the first year and put in all your income and expenditure and these figures you will need to complete your tax return

Have a look through the accounts section and the resources for more information on what to claim for and in some places how

If you have any specific questions, come back and ask. No question is too small :)

[Donna E]

Thanks to all 3 of your :)