Panicking not registered yet

[misssunshine]

Hi there,

Need some advise, I was registered in February and started working in the middle of September haven't registered yet with HMRC. I've arranged an appointment with an accountant. Reading the other childminders posts I am getting really worried. Can someone advice please how to go about.
Many thanks in advance.

misssunshine

[JCrakers]

You have 3months to register as self employed. All you have to do is ring them and either give them details or fill something in(cant quite remember now)
Do it today and then its done :)

[~Grasshopper~]

you dont need an accountant hun. just make sure you inform them your self employed and keep a record of your income and expenses.

honestly its nothing to worry about, ive only just done last years accounts. xx

[misssunshine]

Thanks very much really appreciate that. I've made an appointment with an accountant to get some help in managing my accountants, as a newly registered childminder really struggling to keep up with this. Can someone please advice what accounts books generally childminders used or if someone can please kindly post an example.

Many thanks in advance
misssunshine

[bunyip]

Call the HMRC Business Education & Support Team on 0114 29 69 431. Ask them to send you a free copy of "Childminders - information about tax and National Insurance 2012-13". Then make a note in next year's diary to get the new version before doing your next tax return. This helps with most areas of tax and NI. It also has a useful list of phone numbers for different HMRC departments you may need.

The number for newly self-employed registration help is 0845 915 4515
Self-assessment helpline 0845 900 0444
National insurance helpline for self-employed 0845 915 4655

You need to register as self-employed asap, and do a tax return each year, even if you do not end up having to pay income tax. You should pay class 2 NI contributions, and may have to also pay class 4 if your earnings are high enough. If your income is low, it is even possible to opt out of class 2, but this can affect your entitlement to many state benefits if you later need them, so needs careful thought.

NCMA sell an accounts book designed for CMs. This and the free guide I mention above were all I used (plus a few telephone calls to HMRC) when I started out, and I've already replaced the accounts book with one I knocked up on Word once I got the gist of what records are needed.

Many, many CMs get by perfectly well without having to pay £££s to an accountant. Yes, an accountant can save money for a CM if the CM is earning a lot and needs to find ways to use expenses to bring the profit figure down on paper, but they can also be an unneccessary expense. The personal (tax-free) allowance for this year is over £8k after you've deducted your expenses. If you're only earning between September-March for this tax year, I'm not at all sure that you'd reach the £8k mark, so what are you going to save pay paying an accountant? :huh:

[misssunshine]

Thank you so much that's really helpful. I better ring them. Yes, it makes sense I am sure I would not have earned £8k by March 2013 as I am only looking after two children at the moment. But still very nervous as I've not worked as a self employed before.

Thanks
misssunshine

[sarah707]

You have 3months to register as self employed. All you have to do is ring them and either give them details or fill something in(cant quite remember now)
Do it today and then its done :)

You used to be able to let them know within 3 months of starting work ... however, the last time I checked with HMRC they told me that you had to inform them as soon as you start taking money or you might be fined.

So if you haven't informed them yet then you need to ring tomorrow.

Hth :D

[scottishlass]

Just on reading this post I have realised I filled in the online form to register with hmrc back around 12th nov and haven't had anything from them (except the email when first filled in to confirm received) does it usually take such a long time to hear back?

[bunyip]

Just call them as soon as you can to register and explain. :)

I've heard different times about when you need to register. Some say you only 'commence trading' when you have a paying client. But a rep from HMRC who gave a talk to our group told us that we're trading as soon as we're advertising and 'open for business' (in much the same way that a shop ids open once their door is open, even if no customers come in.) :huh: However, she also said they didn't go hard on newbies who'd never been self-employed before and didn't auite know the ropes.

HMRC are a lot easier to deal with than they used to be, but you'll find that the individual departments rarely speak to one another. So don't assume that the NI people know what you've told the tax credits people, and so on.

They tend to do things at their own pace, but expect you to be up to date, even if they failed to send you the proper form etc. So always be prepared to chase them up. eg. I had to nag them to send my bill for class 2 NI: they'd lost it, but I would've been penalised if the payment was late.

[melco]

Just on reading this post I have realised I filled in the online form to register with hmrc back around 12th nov and haven't had anything from them (except the email when first filled in to confirm received) does it usually take such a long time to hear back?

When I called them I was told that it can take up to 8 weeks to come in the post, it did come in about 5 weeks though.

[scottishlass]

thanks melco :)

[MrAnchovy]

But a rep from HMRC who gave a talk to our group told us that we're trading as soon as we're advertising and 'open for business' (in much the same way that a shop ids open once their door is open, even if no customers come in.) :huh: However, she also said they didn't go hard on newbies who'd never been self-employed before and didn't auite know the ropes.

She sounds rather patronising. How generous of her 'not to go hard on newbies' - in fact the law says that you have until October following the end of the tax year (i.e. October 2013 if you started in the last six months) to register, so fortunately it's not in her gift anyway (although I wouldn't recommend to anyone leaving it that long - apart from anything else your pension credit records would be in a mess).

Starting up as a childminder is very much not the same as opening a shop: when you open a shop you are already incurring the trading expenses of rent etc. and of purchasing stock. Before a childminder starts looking after children only pre-trading expenses are incurred.

HMRC can be helpful - they like to help you pay tax! Good accountants like to help you pay no more tax than you need to, as well as taking away the worry about when you have to do what and pay who how much.

[bunyip]

She sounds rather patronising. How generous of her 'not to go hard on newbies' - in fact the law says that you have until October following the end of the tax year (i.e. October 2013 if you started in the last six months) to register, so fortunately it's not in her gift anyway (although I wouldn't recommend to anyone leaving it that long - apart from anything else your pension credit records would be in a mess).

Starting up as a childminder is very much not the same as opening a shop: when you open a shop you are already incurring the trading expenses of rent etc. and of purchasing stock. Before a childminder starts looking after children only pre-trading expenses are incurred.

HMRC can be helpful - they like to help you pay tax! Good accountants like to help you pay no more tax than you need to, as well as taking away the worry about when you have to do what and pay who how much.

HMRC would rather help me pay tax to HMRC than not.

Accountants would rather help me pay them a fee than not.

I would rather help a parent pay a fee to me than to a nursery.

No real surprises there. :)