Expences Question

[Jackies]

Hi Everyone

I'm new to this and have had a look through the forum but can't find my answer...

Utility Bills and the %'s i understand and know you can put down a % according to how many hours you work per week but how do you claim this money back ? is it tax and the end of the year or is it somthing the utility companies deduct from your montly bill ??

Any advise would be great thanks

[Chatterbox Childcare]

The percentage is an expense that you use to reduce your profit. You don't actually get given anything back

[rickysmiths]

You add up all the % for all your bills so Gas Elec Council Tax Rent if you pay Rent, House Hold Insurance and Water Rates. All of these are a % depending on how many hours you are looking after children over the week.

You then add this figure to all your other expenses so, food,craft materials, wipes, paper towel roll, gloves, toy and equipment you buy, entrance fees for toddler groups, museums etc etc. The total figure then becomes your Expenses for the year.

You add up all your income take off 10% for Wear and Tear and then take off your Expenses the figure you are left with is your net income for the year from wich you take the Tax Allowance for the year leaving you with the amount you then have to pay Tax and National Insurance for. A rough guide is 29% of the figure you are left with will be your tax bill.

This is a very simple explanation and you need more detail. If you are just starting out I can highly recommend the NCMA Account book. It details the expenses % and gives a step by step guide of how to keep you records.

You can look at it here:

http://www.shop.*************/shop/Accounts_Book.html