Just a quick tax question

[Dilly Daydream]

Hi

My parents pay me a month in advance for fees, so Aprils fees will need to be settled by 28th March.

Do I count the fees as earnings for 12/13 or can I break it down - up to 5th April on 12/13 then 6th April onwards on 13/14.

Many Thanks
Helen

[MrAnchovy]

You need to break it down, although you can choose to end your accounts for the year on 31st March if this makes it easier (you have to do the same with expenses as well of course).

[Dilly Daydream]

I dont mind doing it either way to be honest, not gonna earn enough for tax this year anyway to pay tax (will infact be due a refund due to previously being in employment and overpaying there). And I start maternity leave at the end of June for 39 weeks so wont earn enough to pay tax next year either. So probably a pointless question but just wasnt sure how it should be done.

Will break it down to 5th April with earnings & expenses.

Thanks for your reply!

Just out of interest - I have been told by someone you can claim a proportion of house insurance (their reason being that you pay more being a childminder and can therefore claim for the "extra" the childminder pays?!?). I dont think this is correct and cant see it mentioned on HMRC guidelines. I wont be putting it through my expenses but it sparked an interesting debate amongst the group. Does anyone know the answer to that one out of interest?!?

Thanks again xx

[MrAnchovy]

I dont mind doing it either way to be honest, not gonna earn enough for tax this year anyway to pay tax (will infact be due a refund due to previously being in employment and overpaying there). And I start maternity leave at the end of June for 39 weeks so wont earn enough to pay tax next year either. So probably a pointless question but just wasnt sure how it should be done.

Will break it down to 5th April with earnings & expenses.

Thanks for your reply!

Just out of interest - I have been told by someone you can claim a proportion of house insurance (their reason being that you pay more being a childminder and can therefore claim for the "extra" the childminder pays?!?). I dont think this is correct and cant see it mentioned on HMRC guidelines. I wont be putting it through my expenses but it sparked an interesting debate amongst the group. Does anyone know the answer to that one out of interest?!?

Thanks again xx

Buildings insurance - if you claim a proprtion of all your household expenses because you use part of your home part of the time EXCLUSIVELY for childminding (i.e. you do not look after your own children in that part of your home at that time) you can include buildings insurance in that claim (as well as mortgage interest, council tax, service charge, repairs, redecoration and maintenance etc.)

Contents insurance - you cannot claim an increase in your premium because you are childminding, but you CAN claim a reasonable proportion of the whole cost. I am aware that HMRC have accepted 10% without question in some cases, but you may be able to justify a higher proportion.

[Dilly Daydream]

That's interesting to know, thank you for the information! Love how helpful this forum is x