Can someone please advice me??

[marie1969]

Hi i am in the process of going on the voluntary register as the child i look after is over 8 years old. I have been looking after him just 6 hours a week but circumstances have changed and his parent needs full time care now before and after school, some weekends (even bank) and school holidays. He has looked at how much tax credits he would be able to get once i am registered and if it was costing him £170 in childcare a week he would get about £55, my first question is this how much tax and insurance would i have to pay about if i was earning £170?? I was led to believe that you dis-regard two thirds of the earnings so i would just be earning £56.66 a week - but looking on here people are going on about tax returns and expenses I am TOTALLY confused:panic:
:confused:
Please help sorry for long waffle x

[Kiddleywinks]

How long have you been earning through minding?
Have you registered as self employed with HMRC?
Have you told Tax Credits you are self employed and employed thereby making your min 16 hours?

For tax credits you can also add on any time spent on running your business, so any courses you go on, time spent on paperwork, etc
So if you're minding for 6 hours, but travel for 20 mins to get to school to pick child up, and 10 minutes preparing the house/getting activites ready etc then you are working for 6 and a half hours

You won't be taxed on the amount you're receiving from parent, you will be taxed on the amount you get, less any expenses, and this won't be worked out until the end of the financial year (Apr - Apr)
The benefits office (if you get things like housing benefit etc) deduct 2/3rds, but then when you've worked out your accounts, you give them the true figures, as with tax credits, and hmrc.

Hope that helps

[marie1969]

Hi Chrissie H thanks for replying, I have been looking after him for 6 hours a week since jan but didnt even think to inform tax credits until i got a letter asking me to renew them (i work 10 hours at another kitchen job), don't know what to do know because been told i might get a fine for not telling them right away but wasn't trying hide anything just a bit dumb :o x

[Kiddleywinks]

You should have told tax credits hun, ANY change in circumstances as stated on your award notice, however, the amount you will have brought in between Jan and the end of the tax year (April) won't have exceeded the disregard amount. Just make sure you work out how much you received from BOTH jobs when you renew.

Does this mean you haven't registered with HMRC yet as self employed?
This is a bigger concern because in their books 'ignorance is no excuse' and you should have done that as soon as you started minding.
Another point, and I really don't mean to worry you, but are you claiming any other benefits that top up the employed 10 hours a week, and if so, have you told them you are also receiving £20 a week for minding 6 hours?

If you are on benefits, you could be entitled to a 'back to work' grant so it's worth checking that out with your local office.

If I was you, I would get registered with HMRC now before it potentially leads to more trouble.
If the earnings from your employed work, combined with your self employed work is less than your taxable allowance, you won't have any tax to pay anyway, but you really do need to get this sorted asap before you do end up in serious trouble.
I've always found the tax office to be really helpful tbh, so long as you're honest with them.
They also give you access to free courses showing you how to do your accounts too, although there are some good resources on this site to help guide you better.

[sarah707]

As Chrissie says now is the time to fess up and get it sorted - no point putting it off it has to be faced.

You must be registered as self employed - they will ask you to complete a tax return which states income - expenses = net income.

You must register for NI as well - you might need to pay some but they will be able to calculate it for you.

Good luck with it all. If you need more help you know where we are :D