Tax-Ready: Mastering Expenses & Mileage

Tax-Ready: Mastering Expenses & Mileage

Managing your business finances shouldn't require a degree in accounting. KinderStart automates the maths of HMRC compliance, especially the complex world of household bills and vehicle mileage.

Step 1: The Expense Dashboard

Navigate to the Finances tab to see your financial health at a glance. From here, track your total income, projected tax bill, and allowable expenses.

1. Tap the + button in the Finances dashboard.
2. Select Log Expense for physical items (toys, craft supplies) or Log Mileage for journeys.

Step 2: Intelligent Expense Logging

KinderStart doesn't record what you spent; it determines how much you can legally claim back from HMRC.

Select a category and KinderStart handles the HMRC apportionment rules

• HMRC Automated Deduction: Log a household bill (like Gas or Council Tax) while working from home. KinderStart calculates the business-use percentage based on your actual working hours.
• Receipt Capture: The app requires you to snap a photo of the receipt for every expense. KinderStart stores it and links it to your digital record for quarterly MTD submissions.
• Tangible Goods: For toys and books, you may be able to group small purchases together while staying compliant (check the app as this may vary).

Step 3: Automated Mileage Tracking

School runs and playgroup trips are the most common way childminders lose out on tax savings. Log mileage weekly so nothing slips through.

The mileage logger handles the 55p/25p threshold logic for you

1. Vehicle Type: Select between Car/Van (55p rate) or Motorcycle (25p rate).
2. Threshold Awareness: HMRC reduces your claim rate after 10,000 miles in a tax year (dropping from 55p to 25p per mile for a car/van). KinderStart tracks your cumulative total and switches the rate, so your tax estimate stays accurate.

What NOT to Log