Just rung tax office which may be of interest to some of you!

[hunny bunny]

Hi all, have read a few post to do with tax, i found this on the HMRC website, hope it helps explain....weblink is...

http://www.hmrc.gov.uk/manuals/bimmanual/BIM52751.htm

have highlighted some points...these r not my views tis from hmrc website! dont wish to upset any folks... basically if you have claimed 10% wear n tear allowance then you cannot also claim for a new toilet seat also as you have already claimed in the 10% as it is a household expense NOT used WHOLLY & EXCLUSIVELY for childminding...if however u haven't claimed the 10% wear n tear u instead claim for replacing items NOT BOTH...

this i would say is why the man said no to the replacement fencing and decking as a replacement flooring...however safety matting/flooring like the rubber stuff round swings would be safety equipment! therefore 100% wholly attribituble

BIM52751 - Care providers: Childminders: expenses
Childminders work in their own homes and are paid by parents for looking after their children, often while the parents are at work. Profits from childminding are usually assessable under Case I of Schedule D, although some occasional childminders may be assessable under Case VI.

Many childminders are members of the National Childminding Association (NCMA). The NCMA has produced a Members Handbook and this contains guidance on paying tax and National Insurance. The handbook describes the expenses that Inspectors will allow as deductions from childminding income and it is based on an agreement between the Inland Revenue and the NCMA.

Childminders, whether members of the NCMA or not, may calculate their expenses using the NCMA/Inland Revenue agreement. Their statutory rights are not affected by the agreement. Childminders may calculate their profits on the normal basis if they wish to do so.

The NCMA has been told that in calculating any taxable profits, Inspectors will allow as deductions from childminding income expenses which are reasonable in amount and which are directly attributable to childminding. The cash book and attendance register produced by the Association provides an acceptable way of recording income and outgoings. Receipts for items of expenditure will not be required for items costing less than £10.

Household expenditure

The agreement is based on the hours that childminders work and not on the number of children they care for. A childminder looking after a child on a full time basis for 40 or more hours each week is entitled to claim the full time proportion of expenses.

How this works is illustrated in the following table:

Hours worked % of Heating and lighting costs % of Water rates and Council tax Rent
10 8% 2%
15 12% 4%
20 17% 5%
25 21% 6%
30 25% 7%
35 29% 9%
40 (full time) 33% 10%

The full time figures shown in the table should be scaled down from depending on hours worked.

Wear and tear of household furnishings

A deduction of 10% of total childminding income may be made to cover the wear and tear of furniture and household items. This is intended to include household items which are not used wholly and exclusively in childminding. A childminder claiming this deduction may not however claim relief for the cost of replacing such household items. Reasonable costs of cleaning household items where the need for cleaning is as a result of childminding activities may be allowed as a separate item.

The agreement also covers the following expenditure:

Food and drink

Reasonable estimates for the costs of food and drink provided for the children being cared for are acceptable and receipts will not be required.

Car expenses

Where appropriate childminders can use the authorised mileage rates within the Fixed Profit Car Scheme (see BIM47701) as a basis for their claims. However if the childminder wishes the actual cost of car expenses for childminding purposes can be claimed instead.

Other costs

Also allowable - the cost of toys, outings, books, safety equipment, stationary, travel fares, the NCMA subscription, public liability insurance premiums and the actual cost of telephone use for childminding purposes.

Grants

Grants received by childminders to help them to start up their businesses or to meet capital or running costs should be dealt with following normal principles see BIM40450+. If a grant is received before the business begins to trade, the grant will not be a trade receipt. A start up grant may reduce the amount of pre-trading expenditure on which relief is available, see BIM46355.




Hope this helps...the same for everything in your house or garden 10% or cost one or the other but not both

[kindredspirits]

i think the issue is that if you lay down decking then you are increasing the value of your home - therefore your home becomes an asset and the tax office will be technically entitled to a share of the profit when you sell it.
personally i just chuck all my reciepts in an envelope and hope that it works out ok afterall as someone else pointed out - as long as you are declaring something they are not really interested.

[RedDragon]

My friend is a builder and he has a dog - he is allowed to put down the cost of keeping the dog because it's his guard dog who looks after the tools in the house.


Don't know if he was winding me up because he is a bit of a joker (he put a new door on for a woman and told her he only had a number 3 so was it ok if she changed her house number).

[aly]

My friend is a builder and he has a dog - he is allowed to put down the cost of keeping the dog because it's his guard dog who looks after the tools in the house.


Don't know if he was winding me up because he is a bit of a joker (he put a new door on for a woman and told her he only had a number 3 so was it ok if she changed her house number).

did the woman fall for it?...lol

[funfunfun]

This is the back of myn been like it forever ......like 7 years .......want to get it leveled off one safty and the other more room to play !

I dont actually own the house anyway i rent so it will add profit on for the council as they wont do the worrk ...grrrrrrr

You can see abit of the level bit and the rest of the mess .........approx 18ft by 12ft i think .......alot of room im hoping i can put at least some through although i still have to ring to claify

[funemnx]

yeah it

idon'thaveaclue@HMRC.com

(tears streaming - thanks Hebs, made my day!!!)

[brillminder]

keep your photos as evidence,

[Playmate]

We had our garden landscaped 2 years ago as it was unsafe for children to use. More than half the garden is now play bark which we would not have if we didn't mind. Our accountant spoke with IR 3 times, basically got 2 yes answers and 1 no. She decided to put it through our books and basically said if ever we are asked to show our books she will argue the case and advised us how much tax we would have to pay on that proportion so that we could have it put away if we lost the case.

[Hebs]

(tears streaming - thanks Hebs, made my day!!!)

I was in a jokey mood that night!

[funfunfun]

We had our garden landscaped 2 years ago as it was unsafe for children to use. More than half the garden is now play bark which we would not have if we didn't mind. Our accountant spoke with IR 3 times, basically got 2 yes answers and 1 no. She decided to put it through our books and basically said if ever we are asked to show our books she will argue the case and advised us how much tax we would have to pay on that proportion so that we could have it put away if we lost the case.

I totally agree !!!

I wouldnt get the work done at all id happily leave there .....although with the weather being nice and me now working i need trhe extra space and would ideally like some play equipment in this area . I will be putting some through £700 is alot of money put of my own pocket when my minded children will get the most use out of it anyway !!

[Chatterbox Childcare]

I would apply to your local early years for a grant to do it and if not I would think whether to use the garden or the local parks.

I may be wrong but I would expect to be marked down with Ofsted if there isn't outside play available daily

All costs would go through 100%

[Millenium]

In our county we cannot as childminders apply for grants - the only grants available are the "start up funding". The grants for ongoing sustainability are only handed out to nurseries.

[Chatterbox Childcare]

In our county we cannot as childminders apply for grants - the only grants available are the "start up funding". The grants for ongoing sustainability are only handed out to nurseries.

If you are a member of NCMA take this up with them as the grant was supplied by central government for ALL childcare settngs and the NCMA are monitoring counties and their regulations

[Hebs]

If you are a member of NCMA take this up with them as the grant was supplied by central government for ALL childcare settngs and the NCMA are monitoring counties and their regulations

thanks for that Debbie cos it's the same here

[Playmate]

If you are a member of NCMA take this up with them as the grant was supplied by central government for ALL childcare settngs and the NCMA are monitoring counties and their regulations

Just been having this conversation with Mick, he got the same info this weekend at Volunteers training. Our county is another who have not issued any capital grant funding to CM's. So all of you who are NCMA members,and live in an area that hasn't allocated CGF to CM's let NCMA know, either via regional forums or direct to head office.

[Pauline]

Yes, but accountants know their stuff, as it is their job to be up to date with the rules for sole traders and as far as I'm concerned if she has put it through then it is on her back if it isn't allowed.

I'm pretty sure that even if you have an accountant it is still you who are responsible for accurate accounting.

[Millenium]

I believe that county councils/unitary authorities do have the right to segregate childcare into different groups and ultimately if they choose to make all of the funding available to the 'nursery' sector they have done nothing wrong (apart from upset a lot of childminders).

I have never received a single penny of funding because when I started, the start-up grant did not exist - we do however get some free training here - the only one that has to be paid is Paediatric First Aid but all of the others are generally free of charge so I suppose that is better than nothing!!!

[Chatterbox Childcare]

I believe that county councils/unitary authorities do have the right to segregate childcare into different groups and ultimately if they choose to make all of the funding available to the 'nursery' sector they have done nothing wrong (apart from upset a lot of childminders).

I have never received a single penny of funding because when I started, the start-up grant did not exist - we do however get some free training here - the only one that has to be paid is Paediatric First Aid but all of the others are generally free of charge so I suppose that is better than nothing!!!

The funding was for all childcare as far as I am aware. I jumped up and down with our council and a £300 grant was made available to all childminders. Make your voice known as the funding is there.

[Millenium]

Thanks Debbie, I will try that !!!