Very confused doing Tax Return - please help!

[Velleity]

My total income for the year was:

£20,633.00

Wear and Tear Allowance Leaves a Profit of:

£18,569.70

My Childminding Expenses come to £4,885.33 so that leaves a profit of: £13,684.37

Then I am allowed a tax allowance of £8105.00 so that leaves a profit of: £5,579.37

Does that sound right?!

I couldn't work out where to include my tax allowance on the forms so put it in with my expenses!
This left me with no tax to pay.

I've just changed it and deleted the £8105.00 from my expenses and now I have more than 2k tax to pay.

Big difference. Can't work it out. Is my net profit actually £5,579.37 or have I got something seriously wrong??

Help appreciated!!
Might need to pay an accountant if I can't work this out myself.

[scottishlass]

Hi

I have only done 1 tax return before but it just calculated the taxable allowance for me - I didn't have to enter it anywhere or include it in my expenses as it done it automatically so think if you just do your total profit less your total expense then it will work out what you pay tax on xx

[JCrakers]

As far as I know (I'm hoping I've done this right for the past 5yrs..lol) you don't add you allowance anywhere.


You put your gross amount in and your expenses. This gives you a net amount which should show in the box (if you're doing it online)

Then they calculate your tax. If you earn over 10k ish you have to pay more national insurance I think, also you may have to pay on account, which means you will have to pay half for next year too.

I put away £100 a month for my tax. This year my bill is about £1200 whereas last year I had to pay on account and it was £1800 ish

[moggy]

As has been said, you do not need to take into account the tax allowance, they sort that out for you. It is just:

gross income - (expenditure + wear and tear) = profit (or loss!)

[Chatterbox Childcare]

You have done this right and your amount is for tax for 12/13 and half again for payment on account for 13/14.

Not much in expenses - are you sure you have it all in there?

[hectors house]

Yes your expenses look a little low - mine are usually half of my income. I just fill in a short paper tax return - I put in income (less wear and tear allowance) in one box - expenses in another box and take expenses away from income to give net income. I don't work out the tax allowance, I leave that up to Inland revenue.

[bindy]

2K sounds a little high on your net profits

[MiniKins]

Agreed ~ 2k is far too much.

Are you sure this doesn't include National Insurance? Although even with your Class 4 contributions I would have thought the total would still be under that.

Do you owe from a previous year?

And like others, I also think your expenses look a little low.

[Velleity]

I think it's extra because they've asked for half of next year's up-front and that's what I was not expecting.

I'll have to see what extra expenses I can add :/

[hectors house]

I had one year where I had to pay half up front for the following year as well as tax I owed from previous year but the next year I didn't earn as much and the tax allowance went up, so I got it all back again and now generally only pay in arrears again.

[David]

I find it hard enough just looking after my mindees, So i now use an accountant ( taxterrier.co.uk ) and it saves the worry of the Taxman also helps make sure i claim all of my allowances. ( if the MP's can so can I )