Tax Payment Calculation

[lorettacritchet]

Hi,

After getting a clearer picture of what I would have earnt after expenses for the tax year, it seems as though I would have made a profit and will be subject to tax payment.

What is the calculation to work out how much I will need to pay. Please advise.

From what I can work out, I would have earnt close to £12k after expenses, maybe a little more. I know the personal allowance is something over £7k so I am guessing I would have tax to pay over £3k? I am not sure...I also made a loss of -£284 in the last tax year, I assume that goes towards or at least gets taken off my profit this year?

[sarah707]

The tax threshold for this year is £7475.00. You will pay 20% tax on anything you earn over this (after expenses).

You will also need to factor in National Insurance Class 4 which is payable on income over £7,225 at 9%.

If they think you will earn over these amounts next year they will ask for £ in advance so you might need to start saving now.

Make sure you have used your full expenses allowance. There is a document on the HMRC site for childminders -

http://www.hmrc.gov.uk/manuals/bimmanual/bim52751.htm

And there are other documents in free downloads at the top of the forum.

The one written by forum members is good - but we are not accountants and can only give the best advice given to us by HMRC at the time so if you are unsure you should always ring them and check.

Hth :D

[lorettacritchet]

I mean for March I still have to put through the cost of my storage cabinet and some more of my tv licence from prev year but I did forget the £12k I quoted was not including the 10% less wear and tear!!! LOL :laughing:



The tax threshold for this year is £7475.00. You will pay 20% tax on anything you earn over this (after expenses).

You will also need to factor in National Insurance Class 4 which is payable on income over £7,225 at 9%.

If they think you will earn over these amounts next year they will ask for £ in advance so you might need to start saving now.

Make sure you have used your full expenses allowance. There is a document on the HMRC site for childminders -

http://www.hmrc.gov.uk/manuals/bimmanual/bim52751.htm

And there are other documents in free downloads at the top of the forum.

The one written by forum members is good - but we are not accountants and can only give the best advice given to us by HMRC at the time so if you are unsure you should always ring them and check.

Hth :D

[catminder]

I didn't realise you could claim Tv licence as an expense. If so how much % can you claim?

[lorettacritchet]

Catminder, I look after kids from 8 age above, they watch the tv every day they are here to watch dvds or children programmes. See the thread tv for older kids....



I didn't realise you could claim Tv licence as an expense. If so how much % can you claim?