Questions!!!

Blonde Accountant

Hi, I have 3 questions which I am really hoping some of you clever sorts can help me with.

1-I have a client who is a childminder. Her partner helps her out an awful lot and she was wondering if she can pay him. He does have a job and I know that you can claim husband /wifes wage allowance, but what is a recommended amount without and tax/ni implications please?

2-The same client needs to buy a bigger car as she has to take a lot of children to school in the mornings. Her current verhicle is private and she claims 40ppm. She is thinking of p/exing it for a people carrier and paying an extra £2000 tops cash. She is wondering if she can put it through the business. Am I right in thinking that she can then claim dep'n and petrol, motor exps etc but stop claiming the 40ppm. Also can she only claim a proportion of the motor exp e.g 50%pu?


3-Sage help. A different client has never had to pay corporation tax until now, but there is no code in Sage. Does any-one know where is best to set up a corporation tax code please?

Thank-you in anticipation of the help. I hope that I have explained things properly.

burg

It's late so in short:-

1. If they are employed and already pay tax then no real benefit.

2. Yes can change methods on change of vehicle and apply appropriate proportion for pte use.

3. I believe there is a code for CT as a liability at 2310 I think.

Blonde Accountant

Thank-you, very helpful x

Blonde Accountant

Regarding the corporation tax code, is that the ontrol a/c or the expense a/c?

Many thanks

burg

That's the control.

As for the expense you can create something at a suitable place after code 5000. An 8xxx code might be good so it's near the bottom of the P&L.

I don't often do bookkeeping so usually I do a post year end journal that effects the control account and reserves so no need to have a CT expense.

Blonde Accountant

Thank-you so much, that is really helpful x

Blonde Accountant

Hi, regarding my childminding client, it was a case of crossed wires and it is her 11 year old son who helps her out and not her partner. She wants to put in some sort of wage for him, but is unsure what is reasonable. Can anyone help-maybe Burg just one last time??

Anne Boleyn

Employment of a minor

Hi

As to including a wage for her 11 year old, I don't believe she can get a deduction for that. This link takes you to a good notice and section 4 deals with employment of under 16's etc http://publications.education.gov.uk/eOrderingDownload/Child_employment09.pdf

If she wants to show her gratitude for the help given it should come out of her drawings, the amount she gives is entirely up to her.

Hope this helps.