How can you pay no tax

**bex4adz** · 04-02-2008, 11:54 AM

Hi i have heard from loads of people that if you are clever you don't pay tax. I know it is to do with offsetting but how does this work. Say my gross profit was £30000 and my expenses were £10000 I would still have £20000 to pay tax on so how does it work that you don't have to pay

Thanks

Becki

**berkschick** · 04-02-2008, 12:02 PM

You would have to pay tax on any gross profit over your personal allowance which is 5400 or something like that.

As a childminder you would normally loose about 2/3 of your gross pay to expenses.

**berkschick** · 04-02-2008, 12:03 PM

To earn £30,000 as a childminder, you would be doing LOADS of hours!

**tulip0803** · 04-02-2008, 12:24 PM

Childminding expences are high - See the sticky at the top of this section book keepingaccounts, tax, expences & National insurance.

To pay no tax you need to "earn" less than your personal allowance about £5,000 ish. This is after all your deductions have been taken off your income from childminding. Total income £15,000, expences £10,000 = £5,000 earnt

£30,000 is a lot for a childminder to earn before deductions. You would need to work a lot or hours and it would be unlikely that you would pay no tax with that sort of income.

**deeb66** · 04-02-2008, 07:32 PM

Trust me....you would be struggling to make that kind of money

As the others have said there are a lot of expenses that you can claim as you are working in your own home and are using your private car.

**bex4adz** · 04-02-2008, 09:49 PM

Hi thank you very much for your help. I know I will make way above £30000 as I already have 6 full time bookings at £4 per hour 10 hours a day so that is £24 an hour or £240 a day which is £1200 a week. I know people say you can't earn alot of money through childminding but I am the only childminder in my village and the next nearest one is more than 15 miles away so I have the demand for it.

Becki

**Cheeky Chops** · 04-02-2008, 09:50 PM

flipping eck! you have 6 fulltimers!! wow go you!! xx

**sarah707** · 04-02-2008, 09:52 PM

Congratulations on filling your spaces!

All I would suggest is that you keep your accounts very carefully, write down absolutely every single business expense and hire yourself a good accountant...!

An accountant has just joined this site as a forum friend - see box at the top of your screen...

Good luck !

**manjay** · 04-02-2008, 09:52 PM

How do you manage to have 6 full timers?

amanda xx

**crazybones** · 04-02-2008, 09:52 PM

Originally Posted by bex4adz

Hi thank you very much for your help. I know I will make way above £30000 as I already have 6 full time bookings at £4 per hour 10 hours a day so that is £24 an hour or £240 a day which is £1200 a week. I know people say you can't earn alot of money through childminding but I am the only childminder in my village and the next nearest one is more than 15 miles away so I have the demand for it.

Becki

Crikey where do you live? I am moving house

Annie x

**deeb66** · 04-02-2008, 09:54 PM

Originally Posted by manjay

How do you manage to have 6 full timers?

amanda xx

This is my question too?

Surely you would only have maximum of 3 full timers?

**berkschick** · 04-02-2008, 09:55 PM

I was wondering the same as Amanda, how have you managed to get 6 full timers?

Do you mean in the holidays?

**Angela234** · 04-02-2008, 10:13 PM

I also wondered that

Angela

**tulip0803** · 04-02-2008, 10:16 PM

I thought registration covered 3 full-timers(pre-school) and 3 others under 8 too.

**Sarsar3NCH** · 04-02-2008, 10:20 PM

Absolutely but surely over 5s are at school during day or do you charge full fee anyway?

**button68** · 04-02-2008, 10:21 PM

Originally Posted by deeb66

This is my question too?

Surely you would only have maximum of 3 full timers?

I can only assume that the OP has an assistant.

**Trouble** · 04-02-2008, 10:23 PM

lucky you!!!!!!

**tulip0803** · 04-02-2008, 10:24 PM

Originally Posted by Sarsar3NCH

Absolutely but surely over 5s are at school during day or do you charge full fee anyway?

No the school age are part-time, only charged at part time rates. Thats the way I always saw it as there is no place while they are at school as you cannot offer it to an under 5. I was just wondering where the 6 full timers come from as well.

**ajs** · 04-02-2008, 10:45 PM

good question

has bex4adz come back online at all

**tulip0803** · 04-02-2008, 11:30 PM

Also a registering childminder cannot guarantee that they will be allowed to care for 3 under 5's and 3 over 5's as it is down to space and experience as well as the inspector you have for your pre-reg check.
When I first registered they would only allow me 4 (including my DD) until I gained some experience they increased it the following year.