pay as you earn

[Emmalou77]

I was just wondering how childminders budget for thier tax!
I know i will probably have to pay some this coming tax year and wondered if there is a system inplace for me to pay as i go or do i just have to bank it myself and pay at the end of year? Any suggestions will be greatfully recieved. Thanks :-)

[Little_steps]

I was told the other day that if you go to the Hmrc website, there is a ready reckoner on there that will calculate it for you.

Xx

[Emmalou77]

I shall have a look. Thanks little steps x

[Emmalou77]

I haven't worked for about five years so dont know what tax code to use.
Do i just use one from my last employer? confused.com

[rickysmiths]

No you don't use a tax code as a self employed person and definitely not one from a past employment.

I just put approx 25% of my income away in a different account each month and then use that to pay my tax bill and there is usually some left.

[sarah707]

You don't have a tax code - you are self employed now!

You have an amount you can earn before paying tax / class 4 NI.

You fill in your tax return - paper or online - and you get a bill or not depending on how much you have earned.

personally I put away a bit every month to make sure if I get a bill I can pay it!

More information in free resources :D

tax information IR (http://www.childmindinghelp.co.uk/freeresources/Free%20downloads/taxinformationforchildmind.html)

expenses and tax - by Sarah (http://www.childmindinghelp.co.uk/freeresources/Free%20downloads/taxinformation.html)

[The Juggler]

i put £200/month away. Occasionally I need to "borrow it back " in an expensive birthday month but then when the bill comes in most of it is there to pay the bill in full :thumbsup: