Dolly dippy question

[mum67]

Hi all, having another dolly dippy moment I'm afraid.
Could somebody clarify for me, when we are told we can claim something back on tax, ie ink, computer, toys etc. does that mean the whole amount paid or the vat?
My sister says its all of it but I have always thought it is just the vat.

[tulip0803]

For items bought for your business you claim the whole cost as an expense. Things like computers, ink, etc that are also used for non-minding purposes you can claim a percentage relating to business/private use IYSWIM.

[mum67]

Oh thank you tulip, that's great news. Shush don't tell my sister she is such a big head when she proves me wrong.:)

[Kiddleywinks]

It's the whole lot, claiming VAT is a whole different ball game, and only comes into play if you're vat registered.

You have to be turning over £81,000 or more to be VAT registered, and then have to charge VAT on your invoices... Parents would love that one :laughing:

[Maza]

Haha, interesting that you say 'Dolly Dippy' - I say 'Dippy Dolly'!

[Mouse]

People often get confused when talking about "claiming back" expenses and think that means they're going to physically get money back.

In very simple terms, any money you receive is income, anything you spend is outgoings. Take one from the other and you're left with your net profit, which you are then taxed on.

So, if you received £10000 a year in fees, but spent £4000 on toys, food, percentage of household bills etc, your net profit would be £6000. That's below the personal allowance, so you wouldn't pay any tax.
If you earned £20000 in fees and spent £4000, you'd be taxed on £16000. That's why you want to put all your expenses down so you get a smaller amount to be taxed on.

[mum67]

It's the whole lot, claiming VAT is a whole different ball game, and only comes into play if you're vat registered.

You have to be turning over £81,000 or more to be VAT registered, and then have to charge VAT on your invoices... Parents would love that one :laughing:

ooh 81,000 that is a nice round number:D I've more chance of finding the end of a rainbow;)

[mum67]

People often get confused when talking about "claiming back" expenses and think that means they're going to physically get money back.

In very simple terms, any money you receive is income, anything you spend is outgoings. Take one from the other and you're left with your net profit, which you are then taxed on.

So, if you received £10000 a year in fees, but spent £4000 on toys, food, percentage of household bills etc, your net profit would be £6000. That's below the personal allowance, so you wouldn't pay any tax.
If you earned £20000 in fees and spent £4000, you'd be taxed on £16000. That's why you want to put all your expenses down so you get a smaller amount to be taxed on.

Oh Mouse I'm not that dolly dippy yet I know you don't get it back in spondoolies, it comes off the tax, but I didn't know it was all of it, not done this self employed malarkey before so still having teething problems with it.
Thanks for the good advice.:)

[mum67]

Haha, interesting that you say 'Dolly Dippy' - I say 'Dippy Dolly'!

I used to say dolly dimple but because I'm going more do lally tap these days I suddenly keep calling it dolly dippy:laughing:

[Mouse]

Oh Mouse I'm not that dolly dippy yet I know you don't get it back in spondoolies, it comes off the tax, but I didn't know it was all of it, not done this self employed malarkey before so still having teething problems with it.
Thanks for the good advice.:)

Lol...it wasn't aimed at you, just a general comment really for anyone reading your thread. I've seen people ask how they claim their money back, does it come as a cheque etc. I think when someone is new to self- employment we tend to forget that they don't necessarily know all the jargon.

[LizP]

This was helpful to me.

I am new to this and just have 1 mindee at the minute but I have some questions.

I have my own 20mth old but I guess I can't claim anything for him?
I'm guessing I can't receive childcare vouchers for his care from my husband?
My fees for the week from parents are £115 at the minute, I am claiming back around £30 per week. Does this sound about right? I have checked it through etc and looks ok.

Also, the wear and tear 10% comes off the net profit in April?

Many thanks
Liz

[tulip0803]

This was helpful to me.

I am new to this and just have 1 mindee at the minute but I have some questions.

I have my own 20mth old but I guess I can't claim anything for him?
I'm guessing I can't receive childcare vouchers for his care from my husband?
My fees for the week from parents are £115 at the minute, I am claiming back around £30 per week. Does this sound about right? I have checked it through etc and looks ok.

Also, the wear and tear 10% comes off the net profit in April?

Many thanks
Liz

Hi

Unfortunately we cannot claim anything for our own children even if they take up a space. So if we go on a trip and take mindees and our own children we can only claim for mindees and ourselves (not our children IYSWIM) as those are business expenses and you child is your responsibility and not a business expense.

You cannot receive payment for his care as he is your child - however should you send him to playgroup/nursery/other childminder then your husband can pay them using vouchers. However he would still be in your ratio.

Expenses are individual to each childminder. You are making a profit:D

At the end of the tax year the 10% wear and tear is applied to your income before deductions - so at the moment you are entitled to claim £11.50 wear and tear a week IYSWIM

[LizP]

Thanks that was helpful! Some people have told me that I may not make a profit at the end of my first year but this is common, and you have actually made some money but with all of the expenses etc it appears not.

[TabbyTuTu]

In regards to to the printer ink - My printer is solely for childminding, it has been brought just for it and only used to print off things for it, in which case will I only put a percentage as expense or can I put all ink costs and the cost of the printer itself as expense?

[tulip0803]

In regards to to the printer ink - My printer is solely for childminding, it has been brought just for it and only used to print off things for it, in which case will I only put a percentage as expense or can I put all ink costs and the cost of the printer itself as expense?

If it is 100% for childminding then 100% of the costs of the printer, ink and paper can go through your account:thumbsup: