Do I bother logging my expenses on my tax return if I didn't earn alot?

[Sweetpea]

Hello

I earned just under the personal allowance as I started mid tax year.

For my self assessment 2011/12, I was thinking of just deducting the 10% for wear and tear and not bothering with the rest?

Thanks in a advance for your responses

[Boris]

I would, yes. Were you employed before that? You might get rebate.

[Sweetpea]

I was employed up to March 2011 so not in the same tax year as this return is for.

[TAZ]

I would put down some expenses - in particular insurance, Ofsted fees NCMA membership as these will be regular expenses. Also put down any larger purchases. I would not spend too long working it all out though as it will not make a difference financially unless of course you were earning with another job prior to childminding & that puts you over the tax free allowance.

[MrAnchovy]

First, are you sure you did not overpay tax in 2010/11? This often happens when people stop working mid-year but uf you finished right at the end of the year you should be OK.

Next you need to identify any expenditure that can be classed as Capital Expenditure. This would normally include big things like prams, outdoor play equipment, laptop etc. but if you are starting out can equally well be a whole "library" of toys, plus books, and also stairgates, cots/mattresses etc. - including things you already own which you can "sell" to the business at their current value. Basically anything that you going to use for at least 12 months. Don't claim any of these as expenses unless your profit is over £8,105 in which case just reduce it to this level (you will still pay 9% Class 4 NI on anything over £7,225 but it will be worth it as you will save 29% next year). You can claim Capital Allowances for some or all of this expenditure in 2012/13, but you may want an accountant to help you with this.

[MrAnchovy]

Also, make sure that any for any expenses that cover a period of time, such as insurance, Ofsted registration etc. you only claim for as much as falls in the year - so if you pay £60 for insurance starting in September 2012, you should only claim 7/12 of this, leaving £25 to be claimed in 2012/13.

[Sweetpea]

Wow they're great answers, super helpful thank you x