abimat43 Posted April 20, 2009 Share Posted April 20, 2009 Hi, I wonder if any one can help, I was recently browsing the sure start web site and came across a useful guide to running your own business for childminders and doing our own accounts., having been a childminder for 6yrs I was fairly confident that what I was doing what I thought was correct. As well as the normal allowances, gas, electric , equipment and so forth, I was surprised that it was advising that you put down as outgoings was an allowance for a weekly wage. The figure being suggested was £150 per week. Do other childminders do this? I feel that I may have missed out on a large figure that I could have claimed tax relief on . Look forward to your comments.. Link to comment Share on other sites More sharing options...
Guest Posted April 20, 2009 Share Posted April 20, 2009 I dont know what that means. Is this if you employ someone? My weekly/monthly wage is what is left after all of my expenses have been taken out. I use an acountant and havent seen this in my summary which he gives me. Link to comment Share on other sites More sharing options...
HappyMaz Posted April 20, 2009 Share Posted April 20, 2009 I feel that I may have missed out on a large figure that I could have claimed tax relief on . Presumably you're self employed as a childminder, and if so anything you take out of the business to pay yourself will be subject to tax at the usual rates. I don't think you could pay yourself tax free - I'm sure the tax man would take a dim view of it! Maybe they are suggesting this is a reasonable amount to take as drawings? Maz Link to comment Share on other sites More sharing options...
abimat43 Posted April 20, 2009 Author Share Posted April 20, 2009 yes, that is right self employed, This is the bit I read.... ( "A self-employed person draws a salary (referred to by the Inland Revenue as drawings) from their business on a regular basis, usually weekly or monthly, and this is accounted for as a cost. This salary is subject to Income Tax and National Insurance contributions. Once you have set your salary, the Inland Revenue will help you to calculate your Income Tax and National Insurance contributions so you can account for these as part of your costs") I am very confused, to put it (hopefully) clearly, I collect payments, then adjust for allowances including drawigs, then the balance is then taxed?? Link to comment Share on other sites More sharing options...
HappyMaz Posted April 20, 2009 Share Posted April 20, 2009 I am very confused, to put it (hopefully) clearly, I collect payments, then adjust for allowances including drawigs, then the balance is then taxed?? It says in that sentence that the drawings you take from the business is subject to Income Tax and National Insurance contributions. Then the Inland Revenue will help you calculate how much tax and NI you will pay on these drawings so you can incorporate them into your calculations so that you can work out what your rates should be. Anything you take out of your childminding business is in effect your salary - and that includes what you take out each week/month as well as what is left over at the end of the year. But I'm not an accountant - if you're not sure I'd get some proper advice! Maz Link to comment Share on other sites More sharing options...
abimat43 Posted April 21, 2009 Author Share Posted April 21, 2009 I have an accountant and send the figures, incoming and outgoings- what I wasnt sure about is if I can add my 'drawings' into my outgoings, and yes I will ask my accountant.. I just wanted to hear from other childminders and to hear what they do. Link to comment Share on other sites More sharing options...
HappyMaz Posted April 21, 2009 Share Posted April 21, 2009 I just wanted to hear from other childminders and to hear what they do. Its all confusing isn't it - especially as what they say often contradicts what you've read elsewhere! I'm not a childminder, but I am self employed so if you find out any different I'd love to know! Maz Link to comment Share on other sites More sharing options...
Guest jane707 Posted April 23, 2009 Share Posted April 23, 2009 My understanding is that your income as a childminder is anything you have left after paying the bills... I would be interested in what the tax office say. Have you rung them? Link to comment Share on other sites More sharing options...
abimat43 Posted April 24, 2009 Author Share Posted April 24, 2009 i -had a moment to chat to my accountant today, tax return due, yuk!!! anyway the advice was a positive, absolutely NO should I put down 'drawings' on my outgoings, so Im not any better off. oh well i was hopeful... although good news I have had an outstanding cheque arrive in the post this week, just as I thought i it was a bad week. Link to comment Share on other sites More sharing options...
Guest Posted April 25, 2009 Share Posted April 25, 2009 Hi I was very interested in this topic. I always thought, like you, that after our expenses what we had left was taxable. I went on a business course for Childminders and was told that we should pay ourselves a salary and that should be deducted as a cost. I was horrified to hear a salary of £150 per week being mentioned. That's not even the minimum wage is it? Even an unqualified assistant wouldn't work for that sort of money. As qualified Early Years Professionals our time is worth much more than that and we should ensure that it is reflected in our salary. If we don't value ourselves what hope is there of Parents valuing us and the service we provide. Laura Link to comment Share on other sites More sharing options...
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