Expenses

[Annelize]

Hi,
Quick question, me and hubby(also registered childminder) quickly learned that we needed proper jackets to stay dry when doing the school run. One can we put this through the business (as we only got it because we were getting so wet when doing school runs) and two what do I put it through - equipment maybe?
Also we are buying new sofas and this might be a bit cheeky but as the old once are tired from all the messing, feet, shoes etc (new rule when new sofa's arrive, NO jumping, feet, food or drinks ;-)) could we put apart of this through the books and as what?

Thank you
Annelize

[TAZ]

I don't think you can put any clothing through as expenses although a bit of a grey area if it has childminder logo embroidered on it.

No,you cannot claim for your sofa. The 10% off total earnings that has been negotiated for childminders is to cover wear and tear on home furnishings etc

[FussyElmo]

What taz says clothing cannot be claimed unless embrodied with a logo which cannot be removed - I think.

Your settes come in the 10% wear and tear

[Annelize]

Mmmm I did wonder as I know we cant do clothing but was just wondering as its more like equipment (I guess I thought like an umbrella). I guess not.

[Chatterbox Childcare]

I don't think you can claim as you would need a coat anyway, bit like claiming for shoes (not allowed) unless it is embroidered with logo.

As to sofa, as everyone says, if you are claiming 10% then nothing for the sofas

[Wheelybug]

I brought a waterproof jacket and have put mine through. I'm not saying I'm right but my arguement is I don't wear this coat outside of c/m. I have another coat, the only reason I have brought a waterproof one is because it is considered good practice to take the children out in all weathers. My normal coat is not suitable for this as its wool and eventually lets the rain through. If I am required to take the children out in all weathers, I too need the appropriate clothing. To me that is equipment, just like the all-in-ones I have brought for the children to wear when outside.

[MrAnchovy]

I brought a waterproof jacket and have put mine through. I'm not saying I'm right but my arguement is I don't wear this coat outside of c/m. I have another coat, the only reason I have brought a waterproof one is because it is considered good practice to take the children out in all weathers. My normal coat is not suitable for this as its wool and eventually lets the rain through. If I am required to take the children out in all weathers, I too need the appropriate clothing. To me that is equipment, just like the all-in-ones I have brought for the children to wear when outside.

It's a very good argument - it is the same argument that a number of barristers have used to try to justify expenditure on clothing that is not part of a uniform (notably in Mallalieu v Drummond [1983] 57TC330 and Hillyer v Leeke [1976] 51TC90). Unfortunately the courts have decided that HMRC's argument - that as well as enabling you to take children outside, a waterproof coat also fulfils the purpose of protecting the taxpayer from rain which is NOT a business purpose - is even better, and so the expense is not allowable.

[hectors house]

I wouldn't put either thing through for the reasons other people have given above - however I have probably put smaller things through that the tax man may argue about, but unless I'm inspected, who is to know anyway.

When I worked in an office and did the VAT records we put everything through and then when the VAT man came to inspect us he would just make the company pay back the VAT we had wrongly claimed - we didn't pay any fines.

I don't think we are likely to get inspected, we are small fry and as long as you don't put large amounts through - like your sofa, which does come under 10% wear and tear I feel I can try to justify everything else.

[Tazmin68]

I have a fleece and jacket that has debbies daycare embroidered on then so I did put through those

[MrAnchovy]

I have a fleece and jacket that has debbies daycare embroidered on then so I did put through those

That makes it uniform which is an allowable expense (as is its laundry).