Aghhh had my tax bill

[Chimps Childminding]

Ok I thought I might have a bill this year, had even budgeted (in my head if not in my bank) for it. It arrived £816.00 which is bad enough - but then you find you have also got to pay half of that again on account for next year and that also has to be paid by 31st January 2009, with a furtner £408 due in July!!!!!! :angry: So I am cancelling Christmas this year and spending the money on the tax man!!!!!!!!!!! all £1200 of it!!!!!.

Why can't they wait until say april for some of next years? Have phoned and explained that can't really be sure from one month to the next what I will be earning, but apparently it goes on this years figures.:veryangry:

[Wiggly]

Ouch Carolyn - that sure is a fee. HAven't been brave enough to do mine yet.

Hugs
Wiggly
x

[littletreasures]

That happened to me the year before last and then last year found out that on their figures they owe me £800!!! I let them keep hold of it to go towards this years, but havent done it yet.

It's a horrible way of getting our money.

[miffy]

That's a blow - so they assume because you owe tax this year you will do next year too?

What happened to being innocent until proven guilty? What happens to all the interest on this money you have to deposit with them?

Miffy xx

[sarah707]

What happens to all the interest on this money you have to deposit with them?

Miffy xx

The government needs it to balance its budgets :(

[Chimps Childminding]

That's a blow - so they assume because you owe tax this year you will do next year too?

What happened to being innocent until proven guilty? What happens to all the interest on this money you have to deposit with them?

Miffy xx


I guess it makes the tax man richer!!!!!!:D
Like I said I expected to have to pay for this year, but didn't even give next year a thought!!!! Gonna have to sit down and have a really hard look at things. I'm working my socks off at the moment, and seriously considering whether to cut right back on the mindees, as I had put through every expense I could think of!!:(

[emmadines]

WOW, have you put anything aside for it??

taxes :panic: :panic: :panic: i dont even know where to start!!! ive only just completed my 1st weeks work, now i need to start looking at that ncma tax book thing:panic: :panic: :panic: :panic:

needless to say i have just started to put my to be tax money into my tax free isa :clapping: hopefully thats gonna work out and im gonna be a good girl (im hopeless at saving money!! theres always something!!!!)

[Angela234]

What a bill! Poor you
The highest i have had to pay yet is £106 i do put down a LOT of expenses.

Angela

[brillminder]

i think -it sounds a lot but the net earning are 10K with normal deductions, we should all have a tax account, & ni to add to or set a direct debit/ standing order to tax & ni office to help bad savers :)

[Chimps Childminding]

WOW, have you put anything aside for it?? (Quote from Emma)

Put some aside (but only in the last couple of months, hoping that if I didn't need it I could use it for christmas (not much hope of that!!!!!!) but no where near enough to cover the £1200.

Serves me right really, I have been meaning to put some away each month, but it never quite makes it to the bank :blush:

I have learnt my lesson for next year though!!!!!!! Will try and keep my accounts up to date so that if it looks like I will need to pay tax by say February 2009, I will go out and replace toys/equipment instead of giving it to the tax man & hope that what I have paid on account he will give me back eventually:laughing:

[Minstrel]

Thats a good idea, if the money has to be spent anyway you might as well get resources out of it.!!

[brillminder]

Remember any net earnings (Gross- expenses =( net))
net amount over allowance approx. £5493 year ( most folks) you will have tax to pay :)

[Mrs.L.C]

I know how you feel hun. Mines the same. Iv never had to pay some for the following year before so havnt budgeted for it

[emmadines]

WOW, have you put anything aside for it?? (Quote from Emma)

Put some aside (but only in the last couple of months, hoping that if I didn't need it I could use it for christmas (not much hope of that!!!!!!) but no where near enough to cover the £1200.

Serves me right really, I have been meaning to put some away each month, but it never quite makes it to the bank :blush:

I have learnt my lesson for next year though!!!!!!! Will try and keep my accounts up to date so that if it looks like I will need to pay tax by say February 2009, I will go out and replace toys/equipment instead of giving it to the tax man & hope that what I have paid on account he will give me back eventually:laughing:

i've only just started so im all in the good will to do it bit!! fingers crossed thwat i will put it in, im in 2 minds of actually splitting the payments from parents into 3. 1 for tax, 1 for me and 1 for the savings account. (obviously anything i need for the business can come out of the savings pot and then go don as expenses

but like i said.....
i've only just started so im all in the good will to do it bit!!:laughing:

wheather thats gonna actually work ................... well thats anyones guess!:laughing:

[Lou]

This exact same thing happened to me last yr!!!!!!

So this year i sent mine off to an accountant, i earned roughly the same as last yr and had put a similar amount through in expenses, but in stead of having a £1200 tax bill, i had a £70 bill for accountant and no tax to pay!!!!!!

Well worth it, i highly reccomend it, i will deffo use him every yr from now on!!!

[sarah707]

Remember any net earnings (Gross- expenses =( net))
net amount over allowance approx. £5493 year ( most folks) you will have tax to pay :)

In 2008-2009 the threshold is £6,035 BUT don't forget that they've abolished the 10% tax rate...

So next year everything over the tax threshold will be taxed at 20% :eek:

I am making myself put away 20p in the pound of everything I earn this year just in case... :littleangel:

http://www.hmrc.gov.uk/rates/it.htm

[Monkey1]

OUCHHHHHHHHHHHH!!!!!! Gosh, i think i would rather cut back on mindees and spend it on resources for the kids instead.

[Chatterbox Childcare]

I got caught last year and it isn't the 50% for the following year but the Class 4 NI that goes with it too.

You can pay the Inland Revenue by Standing Order which you set up on line or through you bank or I put 10% a month away in an ISA.

Debbie

[Mrs.L.C]

I got caught last year and it isn't the 50% for the following year but the Class 4 NI that goes with it too.

You can pay the Inland Revenue by Standing Order which you set up on line or through you bank or I put 10% a month away in an ISA.

Debbie

Isnt the class 4 NI compulsory?

[sarah707]

Isnt the class 4 NI compulsory?

I don't pay NI - I have an exemption certificate because I have children at home.

I checked my pension status very recently and it's not affected.

They try and frighten you into paying saying your pension entitlement might go down but that's certainly not the case for me. :D

[2kidsunder5]

I don't pay NI - I have an exemption certificate because I have children at home :D

I have children at home but don't have an exemption certificate? I pay Class 2 by DD each month (or standing order get those 2 mixed up)

So how do you get one then ?

Diane x

[charleyfarley]

I have children at home but don't have an exemption certificate? I pay Class 2 by DD each month (or standing order get those 2 mixed up)

So how do you get one then ?

Diane x

Me too, I used to have an exemption certificate but hubby kept moaning that I wouldn't get a pension so I ended up paying class 2.

How do you check on your pension Sarah?

Back to tax bill, I've never paid tax and don't intend to either. I'll keep my numbers down if need be

Carol xx

[Chatterbox Childcare]

Class 4 is not compulsory until you make a profit.

You can get an exemption from NI but I believe Class 4 will be paid as above.

To secure a contribution towards your pension and get maternity and sickness benefits you would need to pay voluntary class 2 which is approximately £8-£11 per month.

Hope that helps

Debbie

[sarah707]

This is information about home responsibilities protection...

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Caringforsomeone/DG_10018691

This is information about how to get a state pension forecast...

http://www.thepensionservice.gov.uk/state-pension/forecast/home.asp

Like I said, they try to panic you, saying if you don't pay NI you might not get a full pension... but when I checked mine was fine :D

[Chimps Childminding]

This exact same thing happened to me last yr!!!!!!

So this year i sent mine off to an accountant, i earned roughly the same as last yr and had put a similar amount through in expenses, but in stead of having a £1200 tax bill, i had a £70 bill for accountant and no tax to pay!!!!!!

Well worth it, i highly reccomend it, i will deffo use him every yr from now on!!!

Thats the other thing I had thought about, using an accountant, I usually do it myself and have put through everything I can think of, but it might be worth getting a professional to do it.

I do pay Class 2 NI by DD, but of course extra was added because I was over the allowance.

Still deciding whether to try and cut down on numbers. Hubby away at mo so will chat to him about it when he gets back, there doesn't seem much point being kna*****d every night to hand the money over to the good old Inland Revenue :D

[Chatterbox Childcare]

Isnt the class 4 NI compulsory?

No it isn't compulsory. You can get an exemption from all NI, pay class 2 voluntary which is about £8-£11 per month and then the class 4 comes in when you make a profit over your allowance.

Hope that helps

Debbie

[Chatterbox Childcare]

oops answered it twice - sorry!

Another bit of info is that when you have a child (up to the age of 21 for the first time) the govenment classes you as at home and those 21 years goes towards your pension. You can get hold of the pension office and they will send you a present and current forcase of your pension. Haven't got the number to hand but it was on the Inland Rev website.

I did my class 2 in case of illness as we had a childminder in our area that was off long term sick and she was able to claim - makes you think!

Debbie

[melanieabigail2004]

Its def worth doing class 2 ni as when I had dd #2 I claimed maternity allowance which worked out at approx £80 a week - better than a kick in the teeth!

Mel

[Mrs.L.C]

No it isn't compulsory. You can get an exemption from all NI, pay class 2 voluntary which is about £8-£11 per month and then the class 4 comes in when you make a profit over your allowance.

Hope that helps

Debbie

IM just windering if thats why my bill is so high. I pay class 2 and this year I have been taxed on £8000 after expenses. Is this why class 4 has been added on?

[Minstrel]

Back original question and it could be tax for next year. my cousins OH is a self employed plumber and has been asked to do this so he has to find an extra £2500. we were talking about it only this weekend.

[Schnakes]

Odd...I thought I had replied to this but my message isnt there.

Anyway! I feel your pain. I got a rebate last year so I didnt bother putting anything away...this year - £2500 bill with an extra £800 to pay "on account". (Is that a new thing???). I cried my eyes out when I got the bill!!

So this year i sent mine off to an accountant, i earned roughly the same as last yr and had put a similar amount through in expenses, but in stead of having a £1200 tax bill, i had a £70 bill for accountant and no tax to pay!!!!!!

Lou - really? How did they do that??? Also - can I have your accountants number!! :idea:

Sx

[Schnakes]

:doh: Okay, Im officially going mad...I had posted on another thread. Gah! Luckily they are very similar threads!

Sx

[Chatterbox Childcare]

You can have an exemption of Class 2 NI which is voluntary but my understanding is that it you make a profit over the £6035 allowance you automatically get charged Class 4 based on the amount.

Debbie

[brillminder]

its always worth putting some cash away if you dont have to pay tax then its a nice bonus :)

[debsthepixie]

I have been registered since Jan of this year. I am worried as I haven't had a tax return yet do I get one for the first year. Help I need advice!!!!

[sarah707]

I have been registered since Jan of this year. I am worried as I haven't had a tax return yet do I get one for the first year. Help I need advice!!!!

Have you told them you are self employed?

You should have had a return in April... I'd chase it if I were you.

Just try and keep your expenses and income figures up to date so it won't be as scary when it arrives :D

[debsthepixie]

yes I told them within in 3 weeks of Childminding I informed them online

[sarah707]

yes I told them within in 3 weeks of Childminding I informed them online

Hmmm then I'd give them a ring :D

[Tily Bud]

I cant believe how much some of you have had to pay :eek: I dont know how i would find that x Ive been a chiildminder for 5 years now and never had to pay tax x I think i might start putting some away just in cas though x

[Chatterbox Childcare]

IM just windering if thats why my bill is so high. I pay class 2 and this year I have been taxed on £8000 after expenses. Is this why class 4 has been added on?

Laura it probably has something to do with it. If you go back and look at the payment summary on line it does split it up and give you the income tax part and the NI part

Debbie

[LisaH]

yes I told them within in 3 weeks of Childminding I informed them online

Definately call them, same thing happened to me in my first year minding. When I rang them they had no record of me!!


My tax bill is rarely more than about £250 - £300. I don't put anything aside to cover it so would have a heart attack if it was much higher!! Lol:)

[Trouble]

i havent had this years forms yet should i be ringing them?

[sarah707]

i havent had this years forms yet should i be ringing them?

Yes!!!!!!!! :eek:

[emmadines]

Definately call them, same thing happened to me in my first year minding. When I rang them they had no record of me!!


My tax bill is rarely more than about £250 - £300. I don't put anything aside to cover it so would have a heart attack if it was much higher!! Lol:)

i've only just started minding, from the 11th aygust. other then regerstering myself do i need one of these forms or will that be next year?

[Chatterbox Childcare]

i've only just started minding, from the 11th aygust. other then regerstering myself do i need one of these forms or will that be next year?

If you have registered as self employed with the tax office you will automatically get one in time to complete a return from 5th April each year.

Debbie

[Andrea08]

I cant believe how much some of you have had to pay :eek: I dont know how i would find that x Ive been a chiildminder for 5 years now and never had to pay tax x I think i might start putting some away just in cas though x

Hi not sure to post ere or start a new one ,,,
i agree i have never paid tax but for some years now i have only earned £130 a week the last term was £150 wk,

BUT NOW i have three children under 5yrs and thats £450 week and my part timers after school at £50 wk (d most i have ever earned in my LIFE)
SOOOO what will happen how much of this should i spend on the kiddies i have a lot of resources that i need ,,,extra rains and a new double buggie BUT will i end up paying loads of tax ?
id be happier to spend the extra on the children than the tax man?
and do you have to pay the tax in one go after we put in our tax return and its calculated?
ohhh got me knickers in a twist now lol HELP do i save or spent?
xx

[sarah707]

do you have to pay the tax in one go after we put in our tax return and its calculated?

No you pay in installments... but you have to pay on account for the next year as well... best tip is to put away money through the year ... 20p in the pound or £20 per £100 wages... in a savings plan!

ohhh got me knickers in a twist now lol HELP do i save or spent?

I spend rather than give the tax man anything

xx

It's a hard position to be in... :(

[jellytot]

so you dont pat NI. i thought i had to, my tax is high this yr but alot of it is NI. also what is it with payin some of nxt yr, you dont do that in any job so y shud we

[Andrea08]

mmmm thank you sarah,

it is difficult as next term i might only have one child on my books again?

if i could work out how much i can earn after expences a year i could start to work out if i need to spend or save, think your right i better put some money away just incase i get a tax bill, would like to pay it off in one go and forgett about it,
dont like bills over my head like not to owe any one except the mortgage, dont even have credit cards.

as for NI i pay by DD every month class 2 i think its about £2.30 week goes out the bank monthly.

glad i looked on now many thanks, sorry for thoes who get big bills x

[ruby]

ok not quite getting this

i have had my tax bill for this year its only £160.00

can you tell me Carolyn where does it say about paying next years as i have look and can't find it anywhere



cathy

[sarah707]

My partner had his bill....

He has to pay this years bill in full by 31 January 2009.

Then the same again towards next years bill 'on account'...

1 payment of 1/2 the bill by January 2009 and another payment of 1/2 the bill by 31 July 2009.

:(

[Chimps Childminding]

ok not quite getting this

i have had my tax bill for this year its only £160.00

can you tell me Carolyn where does it say about paying next years as i have look and can't find it anywhere



cathy

Hi Cathy my letter from Inland Revenue reads as so!!

Self Assessment - Tax Calculation says

"Thank you for your tax return blah blah blah!!!

My calculation shows that the tax due under Self Assessment for 2007-08 is £816.90 due by 31st January 2009

Then underneath it says

I also calculate the payments on account towards your tax bill for 2008-09 are!

1st Payment on account £408.45 due by 31st January 2009
2nd payment on account £408.45 due by 31st July 2009"

When I queried how they knew how much I would owe on tax for next year when I didn't know how much I would earn they said they assume it will be more or less the same, and that any deductions/additions to the amount paid will be made after I submit next years self assessment.

So I guess I'm going to have to try and get it done early so I know what I need to find!!!!!!!!!!

Just wish they would let you pay the next years in maybe April and September (not half in January as well as this years) - don't they know we have christmas coming :laughing:

[ruby]

thank you Carolyn

the first bit is the same but there is nothing at all about next years on my forms

don't know why not sure wether to phone them or leave it


cathy

[J_J]

i think you only pay towards the following tax year if you have earnt a certain amount. a childminder i know has only just started now paying towards the following tax year.
j x

[manjay]

From what I can remember if you have to pay more than £500 you have to pay next years on account

[kellyb]

i've only just started so im all in the good will to do it bit!! fingers crossed thwat i will put it in, im in 2 minds of actually splitting the payments from parents into 3. 1 for tax, 1 for me and 1 for the savings account. (obviously anything i need for the business can come out of the savings pot and then go don as expenses

but like i said..... :laughing:

wheather thats gonna actually work ................... well thats anyones guess!:laughing:


This is what I do -

I have on account for my fees to go into, which my salary goes out of into my personal account, I then use the remainder in that account for my expenses, food, fuel, trips, resources etc. Then I also pay an amount a month out of that into my tax acouunt, so when it comes to paying my bill every 6 months, I have the amount of money there ready, it works really well.

[MissTinkerbell]

I have an e-savings account attached to my current account so as soon as parents have paid me I transfer 20% into my tax account and just hope that will cover any tax when the time comes.

[emmadines]

I have an e-savings account attached to my current account so as soon as parents have paid me I transfer 20% into my tax account and just hope that will cover any tax when the time comes.

i have an e savins and an isa. mums/dads transfere money into mt e account, tax into my isa and money for use gose into my main accout if ands whe i need it. i am planning to put some into savings too

[Heaven Scent]

what is an e-savings account?

[roseybev]

girls ive got a account man got his number from the scottish childminding mag he takes 70 a year .1 year i made 15000 and by the time he took everything of i never paid tax.he does everything for you you just give him all your rect,and figures,with your tax form and they do all the work.

[miss mopple]

This thread has reminded me I need to file my return still so today is operation taxman :eek:

I know my bill will be about £600 so I'm going to have to pay this years up front :( I've looked and looked and there is no way I can shave anymore off to get it below the £500 :panic:

[Chimps Childminding]

girls ive got a account man got his number from the scottish childminding mag he takes 70 a year .1 year i made 15000 and by the time he took everything of i never paid tax.he does everything for you you just give him all your rect,and figures,with your tax form and they do all the work.

Thought I might try using someone next year I thought I had put through everything I could. I will need to spend more on resources - I really hate having to pay the Tax Man, would much rather spend it on the chldren!!!!!!!

[emmadines]

what is an e-savings account?

its an account that you set up online. they send you the forms to sign and you send it back. it means that you cannot access it over the counter or via cash card. you would have to move it to a proper account to be able to get it out! its great as I cant just dip into it whilst out lol

what bank you with?

[Minnie mouse]

This exact same thing happened to me last yr!!!!!!

So this year i sent mine off to an accountant, i earned roughly the same as last yr and had put a similar amount through in expenses, but in stead of having a £1200 tax bill, i had a £70 bill for accountant and no tax to pay!!!!!!

Well worth it, i highly reccomend it, i will deffo use him every yr from now on!!!

How did that work then lou? lol x

[debsthepixie]

My friend has been registered since Jan of this year. She is worried as she haven't had a tax return

[TheBTeam]

I don't pay NI - I have an exemption certificate because I have children at home.

I checked my pension status very recently and it's not affected.

They try and frighten you into paying saying your pension entitlement might go down but that's certainly not the case for me. :D

Thats interesting i knew the exemption could be used for class 2, but didn't even consider class 4, may be worth a pension check! Part of me figures that if you only get about £60 a week losing some isn't gonna make you poor cos on that amount you are poor anyway!

[Chatterbox Childcare]

Thats interesting i knew the exemption could be used for class 2, but didn't even consider class 4, may be worth a pension check! Part of me figures that if you only get about £60 a week losing some isn't gonna make you poor cos on that amount you are poor anyway!

Class 4 isn't optional - sorry everyone pays 8% on profit after the allowance is deducted

There is a line in the tax return asking if you want to reduce your payment for next year but that may have been in the full return

[TheBTeam]

My net profit was £7000 and i paid in the region of £200tax and £100 national insurance, and this was below the amount requiring any payment on account for next year.

[2kidsunder5]

I am at a bit of a loss as to why anyone pays tax? I would sooner spend the money on resources for the kids, or new prams etc than give it to the tax man. I have never paid tax and I intend never to pay tax.

I keep records of my accounts on a spread sheet so I know exactly where I am up to each month. This year I bought a Wii and Wii fit and also a camcorder and laptop so I didn't need to give my money to the tax man lol - all legitimate expenses for my business lol

I put everything through my books even the smallest of expenses.

Diane x

[Peppa]

yes I told them within in 3 weeks of Childminding I informed them online

I had to keep on at them! It took ages for them to send it out and lots of different poeple telling me different things!

Completed mine now, I am putting away 20% of what i earn into an ISA! Will save that till my next bill and hopefully won't be one If I feel there will be in janaury, then I will go shopping for necessaties (sp) and if not then I can pay for a holiday instead! :D

[theoldwoman]

At least you will have the comfort of knowing that your money is making a nice MP comfortable in their second home!!

Sue:mad:

[Jelly Baby]

Hmm see mines confusing as i have 2 jobs! I too had a shock with my first bill which was over £1000 then had to pay on account for jan and july at £900 a time..still got to do this years actually!