I have a client who is claiming housing benefits (as a single parent) and pays a small top up. The only information I can find regards claiming expenses is to take a % of the rent, heating, lighting and rates based on the hours she works.
The problem is that she doesn't actually pay any of the said, her boyfriend does (who apparently doesn't live with her). This is apparently his way of paying maintainance for their 2 children.
My question is how am I meant to work out what her expenses are for the business when she doesn't actually pay for anything?
Then I think the housing benefit thing is a very dangerous game.
Is there a weekly rate she could claim for these expenses instead of the %?
For some reason unknown, childminders seem to get special treatment from the housing benefit people and the WTC peeps, although according to what Ive seen from the latter that is changing as they are now required to prove (when investigated at least) that they run childminding as a business with a view to make a profit.
I read an article from a woman who was moaning her head off about the fact that they stopped her WTC as she had only three children to look after (and couldnt take more due to the size of her house and looking after her own children) as she 'only' got £50 per day for EACH of the children.
For the housing benefit calculation they automatically deduct 2/3rds of a childminders income and ignore it, so basing their income on 1/3rd.
It leaves a bad taste. You do the maths and compare it to what other businesses get such special treatment.
Or maybe thats just me - after earning and paying my tax bill, then paying a FORTUNE out in Childminders fees over the years, whilst they then live off my taxes (which according to my lovely tax accounts supports the welfare state by about 97%), I always felt like I was paying double!
OK rant over. Well - not a rant, but a mild bit of musings.
If she had no utility bills to pay, there would be an issue in claiming anything. But there could be an argument that she is indeed paying those bills, given what the money from the boyfriend is supposed to be for. Of course the easiest way 'round' the whole boyfriend and him paying the bills bit is for him to pay child maintenance properly - lets face it, that doesnt then affect the housing benefit anyway and if the reason is that she cant be trusted to pay those bills, then maybe she shouldnt be entrusted with other peoples children. Of course what does would be their actual living arrangements, but he they are living apart thats no issue. If they are living together - someone will catch up with them at some point.
Love the way some councils go out of their way to teach childminders just how much they can screw out of the tax man, with the courses they run. Plus there is a very detailed guide on HMRC - wonder why they dont do that for other sectors?!
Hi Toni - yes probably the most suitable route in these circumstances is the one John mentioned. Of course its still worth doing the usual calculations. (Much as I dislike saying that).
-- Edited by Cheshire on Saturday 1st of October 2016 11:21:30 AM
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
For the housing benefit calculation they automatically deduct 2/3rds of a childminders income and ignore it, so basing their income on 1/3rd.
It leaves a bad taste. You do the maths and compare it to what other businesses get such special treatment.
Or maybe thats just me - after earning and paying my tax bill, then paying a FORTUNE out in Childminders fees over the years, whilst they then live off my taxes (which according to my lovely tax accounts supports the welfare state by about 97%), I always felt like I was paying double!
OK rant over. Well - not a rant, but a mild bit of musings.
Morning Joanne
Oooh I didn't know that, think I might become a childminder!!
Yep I agree, no other business gets that sort of treatment. as far as I'm aware.
Was the 97% a moan or is that actually true? Time to get on my soapbox but the biggest waste of tax money imo is the amount that goes out in Housing Benefit. A bit of foresight and a massive social housing building program and we could probably halve that budget in future years. The majority of HB goes to people who are working, but because rents have dramatically increased in recent years, means they depend on HB.
PS I'm passing your house on Monday morning (not literally) but I should imagine 3 am will be a tad too early to call for a cuppa Taking a mate to the airport and then dog sitting for 2 weeks
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Morning John
I cant recall the exact percentage but do remember thinking - bloody hell thats a bit bloody steep. My son said exactly the same when he saw his - said he wouldve been better off not knowing cos now he is just annoyed about it.
A gentleman caller at 3am would cause a wave of gossip in my street, with all in the neighbourhood awake and peeking through their curtains, with me probably still fast asleep (as happened when two fire engines and a police car turned up a while ago!). Shame its not a more decent hour!!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
A gentleman caller at 3am would cause a wave of gossip in my street, with all in the neighbourhood awake and peeking through their curtains, with me probably still fast asleep (as happened when two fire engines and a police car turned up a while ago!). Shame its not a more decent hour!!
LOL, that sounds like my son, once he's fast asleep he's dead to the world. Yes, pity it wasn't daytime.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
I totally understand where you are coming from Joanne.
Also what narks me is the 2 year old funding for children to attend nursery when the parents aren't actually working! Why on earth do they need to be given extra hours yet us working folk pay through the nose for childcare and we need it! Now you've set me off! Haha.
Onto this again though, I can see Telephone and internet isn't included in the flat rate and can be claimed separately, however does it include TV licence or can a % of this be claimed too?
