Tax Returns for Childminders

So you have decided to work as a self-employed childminder! Congratulations. You are now your own boss. This does mean, however, that you will have to be responsible for keeping your own records and paying your own taxes. This article will provide you with a great place to start, offering you a few more places to learn about paying your taxes as a self-employed person, as well as providing you with some helpful hints and tips to get you started. When you have read it, feel free to contact us for more information (using the link near the end of this post) or check out some of the other articles on the site.

First of all, and most importantly, you need to let Her Majesty’s Revenue and Customs (HMRC) know that you are newly self employed as soon as you start to earn money. You can do this either by completing form CWF1 (included in booklet P/SE/1, or found here) or by telephoning the “Newly Self-Employed Helpline” on 0845 915 4515. If you fail to register as self-employed within 3 months (starting from the last day of the month in which you began to earn money through self-employment) you may be liable for a £100 penalty – so make sure you stay on top of it! Once you have registered, you will be expected to pay Class 2 national insurance contributions at a flat rate, regardless of how much you are earning (unless you are annually earning less than the Small Earnings Exception, which at the time of writing is £5,075). If you are earning quite a lot of money, you may need to pay more than the class 2 contribution, so it is worth seeing what HMRC have to say at (http://www.hmrc.gov.uk/rates/nic.htm).

In any case, once you have registered as self-employed, you will be expected to start keeping records of your business dealings. These can be summarised as records of all the money entering and leaving your business, including any money you spend on the children you are taking care of (which you may be able to claim as a business expense and receive tax relief for. For help with keeping records, you may like to use the resources available at the National Child-minders Association website – especially the specially designed book at http://shop.ncma.org.uk/registered-childminders-accounts-book-590-0.html, which will help you to keep records of your business dealings.

If you have kept records for the whole financial year, and have made sure you know what sort of expenses you can claim tax relief on, then filling out your tax return shouldn’t be too much trouble. If you are worried about doing it wrong though, or if you would simply prefer it to be completed professionally, you can apply for some expert help by clicking the “apply now” button at the end of this post!

Any more questions? Send us a message, we are happy to help. Alternatively, why not apply for some expert help with your tax return?

apply for a tax rebate

Disclaimer: The above information can not be taken as advice and is for illustration purposes only. Please call Tax Fix before making any claims or confirmation. Tax Fix can not accept any liability for action taken and any losses incurred.

2 comments

  1. ann says:

    should i be vat registeered

  2. Anonymous says:

    if i childmind what can i claim for using my car?

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