Why is my friend only entitled to £16 a week tax cred??

missk_ensington

SuziQ wrote: »

Missk,my only issue is that I ran a business with my ex and in many ways it has been a total disaster-hence the debt-mainly because he was disorganised,didnt price things properly (we ran transport) and never sat down and looked at where all the money was going. I had no chance to change things as he lied to me constantly and never brought receipts etc home-our accountant has the patience of a saint but did say to me recently if he ever shows signs of wanting to start another business,nail his test*cles to the floor!
Too say t has put me off is an understatemnt. I am a qualified complimentary therapist-reflexology,indian head massage and vertical therapy,and have considered restarting that as I regulalrly get requests fro appointments from my old 'regulars' but have no idea how self employed works with ctc-I have seen some posts on here that suggest to me it is a minefiled which just terrifies me!

Haha yeah I dont think I could trust someone with my business, I think I could only ever do it 100% on my own. I think I have good business acumen (paid off most of my mortgage at 22), and I have OCD with regard to checking things over and over again, and Im not at all frivolous with money and am quite anal about receipts and records and logging everything so Im not worried. I dont have a choice I am incapable of being employed, I am too headstrong and cant take orders from people for a sustained period of time! Did 2 weeks temping after I graduated and I just about coped through the 2 weeks, but constantly wondered how I'd ever survive 46-47 weeks, year in year out!

mouseymousey99

Here goes the book link:
http://www.moneysavingexpert.com/site/money-saving-books
even more MSE - get them from the library...

Elle00

SuziQ wrote: »

Missk,my only issue is that I ran a business with my ex and in many ways it has been a total disaster-hence the debt-mainly because he was disorganised,didnt price things properly (we ran transport) and never sat down and looked at where all the money was going. I had no chance to change things as he lied to me constantly and never brought receipts etc home-our accountant has the patience of a saint but did say to me recently if he ever shows signs of wanting to start another business,nail his test*cles to the floor!
Too say t has put me off is an understatemnt. I am a qualified complimentary therapist-reflexology,indian head massage and vertical therapy,and have considered restarting that as I regulalrly get requests fro appointments from my old 'regulars' but have no idea how self employed works with ctc-I have seen some posts on here that suggest to me it is a minefiled which just terrifies me!

Suzi people weren't very helpful when I enquired about self employment either but I don't see what all the fuss is about.

I'm self-employed now though I only work a few hours a week and am still on full benefits (there's a £20pw earnings disregard for lone parents on IS who work under 16hrs a week). I just rang the HMRC self-employment registration line, gave them a few quick details then they went "right, you're registered as self-employed". I got a small earnings exemption certificate sent through to fill in which means I don't have to pay class II NI contributions of £2.30pw as I earn under £90pw.

If I was to work over 16hrs a week, I'd just transfer to WTC and shut down my IS claim. Then I'd pay £2.30pw in NI and budget to pay tax on my profits through a self-assessment tax form each year.

My tax credits would be based on an estimate, same as they are for everyone else. If payments are wrong, they'll just adjust them in the following year.

I think the key to self employment is that you need a decent credit rating and overdraft behind you just in case and the ability to sleep at night through the bad months as well as the good ones.

I'd still like to expand what I'm doing but I'm not convinced there's a 16hr working week out there for me with the economic climate as it is just at the minute.

Hope that helps, sorry for hi jacking!

missk_ensington

Elle00 - Thanks, I dont think people realise how much easier and often better is it to be self-employed, when you're employed you have your personal allowance of £5-6,000 (whatever it is for 2008/09) and you cant dock off your fuel to work, phonecalls, internet...

Whereas with self-employment there are so many legitimate expenses (which admittendly would probably also benefit you from a non-work perspective) like fuel, as I use my car for private and work, I have a log book inc car and log down all work journeys, but say I am going from Blackpool to Burnley for a business trip, there's nothing preventing me from stopping off en route at Blackburn Ice arena where I skate, a journey I would have done anyway but at least its now a free journey. And when I drive 35 miles to my mother in laws every Friday, so long as I stop off at a local boutique and discuss some sales, I can put it down as a legitimate business journey, and many many many more things.

SuziQ

Elle00 wrote: »

Suzi people weren't very helpful when I enquired about self employment either but I don't see what all the fuss is about.

I'm self-employed now though I only work a few hours a week and am still on full benefits (there's a £20pw earnings disregard for lone parents on IS who work under 16hrs a week). I just rang the HMRC self-employment registration line, gave them a few quick details then they went "right, you're registered as self-employed". I got a small earnings exemption certificate sent through to fill in which means I don't have to pay class II NI contributions of £2.30pw as I earn under £90pw.

If I was to work over 16hrs a week, I'd just transfer to WTC and shut down my IS claim. Then I'd pay £2.30pw in NI and budget to pay tax on my profits through a self-assessment tax form each year.

My tax credits would be based on an estimate, same as they are for everyone else. If payments are wrong, they'll just adjust them in the following year.

I think the key to self employment is that you need a decent credit rating and overdraft behind you just in case and the ability to sleep at night through the bad months as well as the good ones.

I'd still like to expand what I'm doing but I'm not convinced there's a 16hr working week out there for me with the economic climate as it is just at the minute.

Hope that helps, sorry for hi jacking!

This has set my old brain ticking-I know Iwouldn't be a great deal better off,but I would be out of the house contributing,could fit it into school hours and the occasinal evening/weekend so no actual outgoings apart from petrol,insurance and updating equipment/ training from time to time.

Will have to check my reflexology couch out,see if it still tilts etc! Have just gone and got my bag out I used to use,all the relaxation cds are still in there (might listen to one myself later!),my essential oils are obviously out of date but really I'm 'good to go'-why didn't I thik of this earlier?????????
I used to charge £25 an hour to travel to someone's home/business to do it,need to see if rates have changed or not and price up insurance (it only used to be around £50 a year.)

Elle00

SuziQ wrote: »

This has set my old brain ticking-I know Iwouldn't be a great deal better off,but I would be out of the house contributing,could fit it into school hours and the occasinal evening/weekend so no actual outgoings aprt from petrol,insurance and updating equipment training from time to time.

Will have to check my reflexology couch out,see if it still tilts etc! Have just gone and got my bag out I used to use,all the relaxation cds are still in there (might listen to one myself later!),my essential oils are obviously out of date but really I'm 'good to go'-why didn't I thik of this earlier?????????
I used to charge £25 an hour to travel to someone's home/business to do it,need to see if rates have changed or not and price up insurance (it only used to be around £50 a year.)

You should think about finding out if you can get a small business start up grant to get your oils and kit up to date. Please let me know how you get on!

C_Ronaldo

OP i tihnk you shoudl suggest to your friend to write down theyre ingoings and outgoings to see if theres anything they could do without or cut down on

foz2000

missk_ensington wrote: »

Yes I know she has chosen to have a baby, but why should she have to give up her dream of having 2 kids because of her finances, when asylum seekers and young single parents can have 3-4 kids and live easy comfortable lives. I know that might not sound very PC, but I know loads of people who work a fraction of what she does but have more luxuries, nights out, cigarettes...

I'm pretty sure is she cuts out her non essentials she would be fine as i'm on slightly less than u mentioned with a wife (self employed hairdresser) and a child

Best thing to do is sacrifice the job or keep going untill she make it in her chosen career and make sure she is entering a career that will bring her to a lifestyle that she want to lead.

Education is the only way to go, going slight OT but if she is surviving now then thats good, if you can stand in the face of adversity and keep surviving somehow then gradually times will get better for your friend!

chivers1977

here's nothing preventing me from stopping off en route at Blackburn Ice arena where I skate,

I thought that you were claiming DLA for a heart condition that makes you pass out.........

Conor_3

missk_ensington wrote: »

No she's doing nursing so get a bursary of £500 a month (not included in tax cred calculations) but has to work 35-37 hours a week on placement for that. I dont know her finances well enough to know why they cant cope, but I've been out with her more than once where her card has been declined and she's been unable to buy food, so paying for nursery for 5-6 weeks at £150 a week just isn't an option

WHAT THE HELL? So there's a £15k income from the husband, £7k from her part time work and now another £6k bursary, a total of TWENTY EIGHT THOUSAND POUNDS and you're complaining that they're "only" getting £16 a week CTC/WTC?

It sounds precisely like they've only themselves to blame for the mess they're in.