Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • KitKatMum2
    • By KitKatMum2 10th Mar 17, 9:45 AM
    • 120Posts
    • 856Thanks
    KitKatMum2
    What happens to Child Tax Credit if I become Self Employed?
    • #1
    • 10th Mar 17, 9:45 AM
    What happens to Child Tax Credit if I become Self Employed? 10th Mar 17 at 9:45 AM
    I have searched for this, but only seem to be getting information about working tax credits…
    Currently, I’m a stay at home mum and my husband works full time. We receive Child Tax Credits. I have been looking into setting up my own business, but I’m confused as to how this will affect the Child Tax Credits.

    I understand that you need to inform them if your income will change by £2500, but will this cause the tax credits to stop immediately? I would expect to make a loss or break even for the first few months while I recoup setup costs – if the tax credits were to stop or be reduced, we would probably struggle.

    Also, I am obviously only going to have estimated profits for the first year – is that good enough for the Tax Credit people? And what happens if I make significantly more/less than I have estimated? Many thanks in advance.
Page 1
    • Darksparkle
    • By Darksparkle 10th Mar 17, 9:52 AM
    • 4,656 Posts
    • 2,941 Thanks
    Darksparkle
    • #2
    • 10th Mar 17, 9:52 AM
    • #2
    • 10th Mar 17, 9:52 AM
    Whether employed or self employed, you can only provide an estimate for the current year as no one can confirm exactly what they will earn in the future.

    How your claim is affected depends entirely on your circumstances and the income threshold for your circumstances.
    • KitKatMum2
    • By KitKatMum2 10th Mar 17, 11:27 AM
    • 120 Posts
    • 856 Thanks
    KitKatMum2
    • #3
    • 10th Mar 17, 11:27 AM
    • #3
    • 10th Mar 17, 11:27 AM
    Thanks. Can anyone tell me, would any changes as a result of me working only start in the new tax year or would they be immediate? My husband had a pay rise last August, we called to tell them and had a letter saying our tax credits would go down this April coming when the new tax year started.
    • KitKatMum2
    • By KitKatMum2 20th Mar 17, 10:08 PM
    • 120 Posts
    • 856 Thanks
    KitKatMum2
    • #4
    • 20th Mar 17, 10:08 PM
    • #4
    • 20th Mar 17, 10:08 PM
    Sorry to be a pain, but is anyone able to answer the question above? Thanks in advance
    • Darksparkle
    • By Darksparkle 21st Mar 17, 6:00 AM
    • 4,656 Posts
    • 2,941 Thanks
    Darksparkle
    • #5
    • 21st Mar 17, 6:00 AM
    • #5
    • 21st Mar 17, 6:00 AM
    The new tax year is only a couple of weeks away so would depend when you call them and the exact changes you report.

    Without knowing your circumstances it's not possible to say how or when your claim would change.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,499Posts Today

7,768Users online

Martin's Twitter