Self-employment - WTC terminated due to lack of turnover

Hammyman

HappyMJ wrote: »

You claim the entire 45p per mile you do not need to apportion it based on how many children you are carrying.

Are you self employed?

ALL tax deductible expenses can only be allowed on a proportional basis if they are used both for business and personal.

Pick up the phone and phone the HMRC helpline. My parents for example claim the running expenses on their car instead of the mileage. They can only claim a percentage, not the full amount as they use it for both personal and business and were they to claim the full amount they would undoubtedly be penalised by HMRC in an audit.

And this isn't just one tax accountant who has told them that.

Hammyman

melly1980 wrote: »

You seem to forget that my wife is a childminder. It is done in % terms. There is guidance for how to do it.

If the room and other expenses she is claiming for using is used for both business and personal use, SHE IS BREAKING THE LAW. Plain and simple. Just because your wife is a childminder doesn't mean she has the first clue about tax and people like you who bleat on about something 9 times out of 10 are those who read the bits they want to see on the HMRC website and ignore those they don't agree with.

Hammyman

Russe11 wrote: »

Furthmore I can't see how they NMW comes into it there is no requirement to pay yourself anything if you don't want to(as a sole trader).

Sorry but if you make a profit as a sole trader you have no choice but to pay yourself as a sole trader as your income is regarded as your net profit, not what you decided to draw out of the business. If you've been paying yourself £5k a year but made £10k net profit and claiming benefits etc based on £5k, if you ever get investigated you'll be done for fraudulently claiming benefits by falsly declaring your income.

Now if you set up as a Ltd company, thats a different story.

melly1980

Hammyman wrote: »

If the room and other expenses she is claiming for using is used for both business and personal use, SHE IS BREAKING THE LAW. Plain and simple. Just because your wife is a childminder doesn't mean she has the first clue about tax and people like you who bleat on about something 9 times out of 10 are those who read the bits they want to see on the HMRC website and ignore those they don't agree with.

Anothger example of sheer and utter igonrance.

I will say it again

THE METHODOLOGY FOR EXPENSES ARE PRE AGREED BETWEEN NATIONAL BODY FOR CHILDMINDERS AND THE INLAND REVENUE THEN COMMUNICATED TO CHILDMINDERS.

We havent deduced or interpreted anything

What bit of the above are you stuggling to understand. It doesnt matter how many kids of our own we have or what we do with them. We can, and do knock a % of our gas, water, electricity and council tax from the earnings as per the IR say so. Obviously, you know better than us, the national institute for childminders, the inland revenue and the other childminders on here that have said the same.

From the inland revenue site

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.

These are what we follow and are what you are telling me is wrong.

pipscot

Hammyman wrote: »

If the room and other expenses she is claiming for using is used for both business and personal use, SHE IS BREAKING THE LAW. Plain and simple. Just because your wife is a childminder doesn't mean she has the first clue about tax and people like you who bleat on about something 9 times out of 10 are those who read the bits they want to see on the HMRC website and ignore those they don't agree with.

There are special rules for childminders - if you look at the link HappyMJ sent, you will see that housing expenses are calculated for childminders based on the number of hours they work and are on a percentage basis.

Percentage-based calculations are also acceptable for most other home-based businesses including those who have joint business/personal use of a room. There is plenty of guidance on the HMRC website including example calculations.

melly1980

pipscot wrote: »

There are special rules for childminders - if you look at the link HappyMJ sent, you will see that housing expenses are calculated for childminders based on the number of hours they work and are on a percentage basis.

Percentage-based calculations are also acceptable for most other home-based businesses including those who have joint business/personal use of a room. There is plenty of guidance on the HMRC website including example calculations.

Hammyman doesnt need to look at the links. He/she knows better. Either that or doesnt want to look at them because it would blow their ill thought out pre-conceived opinions out of the water. Its far easier for him / her to keep regurgetating them, it keeps the mind in balance. Far to difficult to have a major thought overhaul.

Strapped

Hammyman wrote: »

Are you self employed?

ALL tax deductible expenses can only be allowed on a proportional basis if they are used both for business and personal.

Pick up the phone and phone the HMRC helpline. My parents for example claim the running expenses on their car instead of the mileage. They can only claim a percentage, not the full amount as they use it for both personal and business and were they to claim the full amount they would undoubtedly be penalised by HMRC in an audit.

And this isn't just one tax accountant who has told them that.

Yes, you have to be very careful re. which expenses are allowable or not. I run an eBay business. If I drive to the Post Office to post parcels then I can claim for mileage BUT only if that journey is ONLY to post parcels for the business. If I, say, also posted a personal letter, or did some personal shopping, as well, then my understanding is that that journey becomes non-allowable completely (ie no apportionment).

Jomo

melly1980 wrote: »

Since you have trouble reading I will point out the facts again.

The expenses are agreed and legitimate with the inland revenue. They are standard % that you can account for and legitimate.

I seem to remember similar cries by MPs when trying to justify their expense claims:rotfl:

Russe11

Hammyman wrote: »

Sorry but if you make a profit as a sole trader you have no choice but to pay yourself as a sole trader as your income is regarded as your net profit, not what you decided to draw out of the business. If you've been paying yourself £5k a year but made £10k net profit and claiming benefits etc based on £5k, if you ever get investigated you'll be done for fraudulently claiming benefits by falsly declaring your income.

Now if you set up as a Ltd company, thats a different story.

You pay yourself the profit of course, but if thats less than the nmw then it does not matter does it. Nothing wrong with spending the £5k on expenses. 80% of business fail in the first year anyways so theres likely to be more bending the rules claims than not.

There plenty out there no doubt putting down the the bare minimum in the books to qualify and doing cash business on top.

melly1980

Jomo wrote: »

I seem to remember similar cries by MPs when trying to justify their expense claims:rotfl:

So presumably you dont think minding children costs electricity, food, gas or water?

If it does, then whats your point.