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Childminder's expenses

08/04/2017 14:34:34
Hi, this is going to be a bit of a long one - sorry! I have a few questions regarding expenses, as I have been given different answers by other childminders that need clarifying please. Could you please tell me if the following are allowable:
1) I have installed a downstairs toilet, in able to be inclusive and provide care for children with disabilities. Someone mentioned that I couldn't as it was also benefiting my property if I was ever to sell, but I could claim for the actual cost of the fixtures and fittings (sink, flooring, tiles etc).
2) I have chickens that I use as a learning resource for the children, but was informed that I needed to build an enclosure for them whilst cared for children were present, as the chickens poo a lot and it can be dangerous (they used to free range in the garden and go in the coop to sleep). Can the materials for the enclosure be claimed for, and also food etc?
3) I have a shed in my garden that I have previously used for my own purposes, but rather than buying another, I have built lots of shelving inside to store the children's outdoor toys and gardening equipment that we can use for our vegetable/flower gardens. Is it true that I can buy the shed off myself as I am now using it for my business?

I have all the receipts for the materials purchased, all the work has been completed by my partner and myself so there are no labour costs.

Many thanks in advance
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Re:Childminder's expenses

10/04/2017 09:31:26
Hi

Childminders can claim business expenses like anyone who is self employed but then they also have specific agreed expenses that can be claimed, like for using their home for business.

Follow this link to our E learning http://www.hmrc.gov.uk/courses/syob3/cm/HTML/cm_menu.html?utm_source=HMRC-DSBA-Partner&utm_campaign=Mar-Campaign-Partner&utm_medium=Email&utm_content=cm and we have a webinar too that provides help on expenses https://attendee.gotowebinar.com/recording/8829699969171185155

This message was edited 1 time. Last update was at 10/04/2017 09:32:12

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Childminder's expenses

11/04/2017 05:44:04
Thank you, but neither give a clear answer to what I'm asking, which is why I've asked on here. Could you give me a simple yes or no please ??
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Childminder's expenses

12/04/2017 23:21:10
As an ex-accountant (but with only limited Self Assessment experience) I can give you my view for what its worth,

1. Id say it would be seen as an improvement and therefore not claimable. The basic logic is that if the work makes it better than it had been before, then all the cost of the work is classified as capital and no deduction can be claimed for any part of that expenditure. Id say that also includes the cost of the fixtures and fittings.

2. I think the cost of the changes to the coop could be claimed as its a safety thing thats only required because of your trade and it would be easy to argue that it doesnt improve the capital of the property (as in 1 above). I dont think you could claim for the food though as thats required anyway and the chickens were already part of the family as such ie they would need to be fed regardless of the trade.

3. Yes as long as its brought into the business at its 2nd hand value not new cost.

This message was edited 1 time. Last update was at 12/04/2017 23:24:55

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Re:Childminder's expenses

13/04/2017 08:44:39
Hi emlo1982

Thanks for your original post and to ToffeeApple for your input.
We agree with ToffeeApple in respect of point 1, however points 2 and 3 would not be allowable.
There is more information about childminders expenses in our Business Income Manual which you can refer to for guidance https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim52751 HMRC Admin 3
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Childminder's expenses

14/04/2017 10:35:27
Many thanks ToffeeApple for your views; we were thinking along the same lines, but unfortunately looks like we were wrong. This guidance is as clear as mud ?? Thank you for your response HMRC ADMIN 3.