expenses

[julie w]

I have read somewhere that instead of totting up all our expenses and percentages etc every week/month, that childminders can just add up all their income,and at the end of the year subtract 3/4 of it for expenses. Does anyone know anything about this method? It does seem an easy, simple way of doing our books if I have heard correctly.:confused:UPDATE I read it page 20 of this weeks 'Who Minds' magazine.

[deeb66]

I am sorry but this is completely wrong!

You have to do your accounts properly and put through each individual expense.....they have to be an actual expense and not a figure plucked out of your head.

I really wouldn't recommend that you do this as you would be in big trouble if the taxman found out.

Dee

[tashaleee]

Sorry would love to be able to do that but not allowed - you have to be accountable for each and every penny (though you dont have to have receipts for anything under £10 - ie ice cream bought from the shop on a trip doesnt need to have a receipt to be put through, but if you have it then great)

Can you say if someone told you that, or if you have read it somewhere - just being nosey/curious... :blush:

[The Juggler]

I think that the benefits people do something similar if you are claiming benefits. They work out turnover then deduct something like 2/3 to work out your income. Not for tax though - sorry!

[sweets]

I have read somewhere that instead of totting up all our expenses and percentages etc every week/month, that childminders can just add up all their income,and at the end of the year subtract 3/4 of it for expenses. Does anyone know anything about this method? It does seem an easy, simple way of doing our books if I have heard correctly.:confused:UPDATE I read it page 20 of this weeks 'Who Minds' magazine.

I wish we could, how much easier would it be!

[Chatterbox Childcare]

DON'T do it this way or you are leaving yourself wide open to fraud.

You need to prepare and keep accurate accounts in case the IR need to see them. If you do them with 3/4 expenses you will be liable to a very large fine and panelties plus back dated interest will be levied.

Might be an idea to advise the other minders that do it too.

[margimum]

The 2/3 disregard mentioned on p20 of "Who minds" is for benefits purposes only, not for the tax man, sorry. Wish it were so simple.

[julie w]

Thankyou . It was just a fanciful thought. Did seem too good to be true. Didn't need a lecture, but thankyou anyway.lol.:)