sarah707
16-04-2014, 02:46 PM
Working out percentages for large garden equipment / big changes to provision
Disclaimer – I am not a tax expert. I rang the helpline and explained my situation. The advisor told me what to do. If your situation is different you will need to ask advice yourself. Thank you. Sarah.
Expenses must be reasonable and you must be able to explain to HMRC how you have worked them out if you are challenged.
Here is an example –
I have made changes to my garden – I have added some AstroTurf and bought a new shed. HMRC say that some of the changes are for my benefit / my family’s benefit and some are for childminding.
I tell HMRC that Ofsted require me to make the outside area available to children every working day and that I would not have made the changes if I was not a childminder.
So, HMRC advise me to claim a % of childminded children’s use of the garden in the following way –
I work 48 weeks a year for 5 days a week = 240 days
There are 365 days in a year
I use the website Percentage Calculator (http://mistupid.com/math/percents.htm) to ask the question –
240 is what percent of 365? The website generates the answer = 66%
So I can claim 66% of the cost of the changes I have made as expenses.
If you have any questions about your personal circumstances you should ring the HMRC self-assessment advice line and ask them – you will need your National Insurance number as well as your name, address and date of birth – make sure you say you are a childminder because they will not automatically understand our unique agreement between HMRC and NCMA.
HMRC self-assessment advice - 0300 200 3310.
Other useful tax / expenses documents include –
My expenses document in free resources on the Childminding Forum - expenses and tax - by Sarah (http://www.childmindinghelp.co.uk/freeresources/Free%20downloads/taxinformation.html)
HMRC childminder checklist -
tax information IR (http://www.childmindinghelp.co.uk/freeresources/Free%20downloads/taxinformationforchildmind.html)
HMRC childminder expenses guide incl information about car expenses –
BIM52751 - Care providers: childminders: expenses (http://www.hmrc.gov.uk/manuals/bimmanual/bim52751.htm)
Useful Childminding Forum thread –
Tax deductions (http://www.childmindinghelp.co.uk/forum/showthread.php?t=2734)
Mortgages, childminders and expenses – please read the disclaimer in the post at the start of the thread –
https://www.facebook.com/groups/independentchildminders/720490594639017/?stream_ref=2
Cars and expenses – information from group members Debbie & Dayna
https://www.facebook.com/groups/independentchildminders/694515627236514/?stream_ref=2
Tax information webinar –
http://www.childmindinghelp.co.uk/forum/blogs/sarah707/69-tax-information-webinar-06-2013.html.
Disclaimer – I am not a tax expert. I rang the helpline and explained my situation. The advisor told me what to do. If your situation is different you will need to ask advice yourself. Thank you. Sarah.
Expenses must be reasonable and you must be able to explain to HMRC how you have worked them out if you are challenged.
Here is an example –
I have made changes to my garden – I have added some AstroTurf and bought a new shed. HMRC say that some of the changes are for my benefit / my family’s benefit and some are for childminding.
I tell HMRC that Ofsted require me to make the outside area available to children every working day and that I would not have made the changes if I was not a childminder.
So, HMRC advise me to claim a % of childminded children’s use of the garden in the following way –
I work 48 weeks a year for 5 days a week = 240 days
There are 365 days in a year
I use the website Percentage Calculator (http://mistupid.com/math/percents.htm) to ask the question –
240 is what percent of 365? The website generates the answer = 66%
So I can claim 66% of the cost of the changes I have made as expenses.
If you have any questions about your personal circumstances you should ring the HMRC self-assessment advice line and ask them – you will need your National Insurance number as well as your name, address and date of birth – make sure you say you are a childminder because they will not automatically understand our unique agreement between HMRC and NCMA.
HMRC self-assessment advice - 0300 200 3310.
Other useful tax / expenses documents include –
My expenses document in free resources on the Childminding Forum - expenses and tax - by Sarah (http://www.childmindinghelp.co.uk/freeresources/Free%20downloads/taxinformation.html)
HMRC childminder checklist -
tax information IR (http://www.childmindinghelp.co.uk/freeresources/Free%20downloads/taxinformationforchildmind.html)
HMRC childminder expenses guide incl information about car expenses –
BIM52751 - Care providers: childminders: expenses (http://www.hmrc.gov.uk/manuals/bimmanual/bim52751.htm)
Useful Childminding Forum thread –
Tax deductions (http://www.childmindinghelp.co.uk/forum/showthread.php?t=2734)
Mortgages, childminders and expenses – please read the disclaimer in the post at the start of the thread –
https://www.facebook.com/groups/independentchildminders/720490594639017/?stream_ref=2
Cars and expenses – information from group members Debbie & Dayna
https://www.facebook.com/groups/independentchildminders/694515627236514/?stream_ref=2
Tax information webinar –
http://www.childmindinghelp.co.uk/forum/blogs/sarah707/69-tax-information-webinar-06-2013.html.