Self Employed - Financial Advise Please

hot_saver

Im self employed - earning 11.5k last tax year ( plus aprox 2.5k from being employed) next tax year, I will only earn aprox 11.5k ( ie no additional job providing extra income). I believe that I will have a 2.5k tax liability to pay next Jan
I own my own house - well Norther Rock do - my mortgage will increase next May by £200+ - I have no savings and no other income. I dont think that I can move my mortgage as I am self employed - showing low profits and I need 188k re-mortgage loan to stay put! I have aprox £13k owing on credit cards.
I have aprox 10k equity (luckily) still in my house -
Can I claim any financial help from anywhere? ( benefits)? I am struggling to live At the mo I am taking out more cash from the business than it has available ( its a partnership & my 'share' value has gone down! In any case, I am taking far more than the 11.5k that the business earns in profit ( cash flow is now very tight ).
How can I improve my situation?
All genuine ideas very, very welcome please.

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Gemmzie

Hi,
On that income you can apply for Working Tax Credit, you may also be able to get a small amount of Council Tax Benefit.
If you pop up your SOA here (http://www.makesenseofcards.com/soacalc.html) then we might be able to save you some further money.

Hope that helps

hot_saver

Thanks
Have done the calculation - but it looks dreadful.
I have a net asset of -£10,100.

ps - forgot to say - my mortgage is interest only and I have three credit cards - largest sum is on 4.9% for life - next is 8% etc.
Not sure what else I can do!! Have cut down on every thing that I can - but my out goings are greater than my income - the shortfall has to go on a credit card each month - and in Jan I will have a 2.5K tax bill!

I am single with eldest (21) child living with me. Dont want to loose the house! Need more income. .......anyone got any ideas?

GeorgeUK

Have you looked at the comparison sites to see if your utility bills can be reduced? Are you buying shops own brands? Do you do mealplans and buy in bulk for savings?

Have the other partners said anything about how to improve the business?
It seems like you need to generate the money here or else look for income from another source. Can you get a 2nd job?

hot_saver

Yep....I genuinely do all of that!

I make a list, buy own /value brands / cook from scratch etc,etc.
Got an allotment this year to grow my own - limited sucess so far, but looking forward to next year.

Have capped my utility bills. only turn heating on when absolutely necessary etc.

Partner in business says their ok about me taking more out and ultimately having a lower stake. But as I said earlier - unfortunately even thats not enough.

Will have to get a second job .... but owe 1800 in unpaid PAYE from previous years, which will be deducted as soon as I start being employed again.
So aprox £150 per month will be deducted for back tax. Assuming that I can earn £400 per month by working 17 additional hours pw - I think 100 will go on tax plus 150 on back tax - so take home about £150.....not much for all those 'extra' hours work!

I dont expect something for nothing....but want to do the best thing...whatever that is?

hot_saver

I have checked tax credits etc (online) and calculate that I can only claim £62 per month. - which I would 'loose' if I got a 2nd job.??

milliemonster

can you post up an soa?, do you live alone? do you have children?, if you can claim the £62 a month then get claiming it, at least until you can find a second job

hot_saver

Thanks Everyone.........appreciate your help.

never claimed any kind of benefit in my life......but really thinking about it now - needs must!

Poppy9

Have you considered taking in a lodger to help with your home bills?

Does your eldest child work/contribute to household?