Looking for a little advice, I guess.

NotQuiteNorbert

Hope this is the right place. If it isn't then mods, please feel free to move this post. .

This could be a long one, sorry, as I don't know how to word what I want to say. I guess I'm sort of sounding things out to myself as much as you guys.

For the last two years I've been a stay at home mum. My partner works, and we get tax credits.

Over the last few months in my own time I've been working on a series of t-shirt graphics inspired by an international folk musician (Let's call him F). Recently had the chance to present these to him and he approved.. so much so that we will hopefully soon be looking at supplying his online store with some of these t-shirts, and then further down the line supplying them for sale at gigs etc.

It's very very early days yet and, although excited by the possibility of getting somewhere with this, I'm also trying to be sensible about it and take care of all that needs to be taken care of. My other half is all for doing this under the radar, as it were, because he doesn't think it'd be 'worth' doing it any other way. I don't feel right about him even suggesting that, plus I'm pretty sure that if we were found out it would leave me royally screwed with the tax credits people.

I know I may not make much from this venture, if anything at all. At the moment, I'm following this for the love of it.

The plan at the moment is to speak to F in the next couple of weeks and begin to discuss numbers with him. We don't know how this is going to work yet.

As I see it, our options are as follows:

* We supply F with t-shirts ready printed.
* We allow F to use the graphics and have his own t-shirts printed, in return for a percentage from each shirt sold.
* I sell the designs to F, for him to do what he wants.

(I don't like the last one but it struck me as a possibility.)

If you've got this far, well done!

Want to know how to keep this on the level, as I'm completely lost and don't know what to do at all.

I'm looking for any advice anyone can give me. If there's anything I need to do, let me know, but be patient- business is a bit of an alien concept to me!

xx

Caroline73_2

NotQuiteNorbert wrote: »

My other half is all for doing this under the radar, as it were, because he doesn't think it'd be 'worth' doing it any other way. I don't feel right about him even suggesting that, plus I'm pretty sure that if we were found out it would leave me royally screwed with the tax credits people.


As I see it, our options are as follows:

* We supply F with t-shirts ready printed.
* We allow F to use the graphics and have his own t-shirts printed, in return for a percentage from each shirt sold.
* I sell the designs to F, for him to do what he wants.

Your 3 options...work out the pros and cons of all.

Supply F with printed t shirts - so you would get paid by F for a job lot of t-shirts. Cons- Initial costs are yours until you get paid by F. Pro - you won't get left with a job lot of t shirts
Allow F use the graphics - Pro's - cuts out the initial outlay Cons- limited earnings
Sell designs to F - immediate payment, Cons - again it's limited.

Regarding your other half - you cannot do business 'under the radar'. You have to earn over £6k a year before you pay tax so you could earn a nice amount with paying tax.

dekh

Anything other than declaring your income could indeed get you stuffed when found out by a number of different government agencies.

I don't think income affects child tax credits but it may well affect working tax credits.

Remember though, it is only profit that counts as income for WTC purposes (and income tax). So if you sell £10K of tshirts and only make 1k profit in the first year then that is all that counts towards your combined income.

If you are going self employed you also need to tell the inland revenue and start paying class 2 NI. (Low earners can opt out of Class 2 but it may reduce your pension).

You only need to tell the WTC people once you are actually earning money, but putting it off so that you are over paid can be painful later as they will claw back extra monies from WTC and Child Tax Credit when it all catches up. (Just like underestimating the Gas meter except they shouldn't take it in one huge lump like the Gasman would try to.) Approved childcare costs also count for WTC purposes (80% I think) so you do get help there.

So far I've always found the WTC and Inland Revenue pretty easy to deal with. They'll give you direct advice give them a ring.

One other thing to look at is business start up funding. You can usually get grants to help with things like capital purchases (like a new laptop for instance) or stationary or a website. Business Link might be able to help there. There is probably extra help for mothers returning to work so I would contact the Job Center and your local council too.

I could well be wrong about some of this so check the facts and good luck

Horace

dekh wrote: »

One other thing to look at is business start up funding. You can usually get grants to help with things like capital purchases (like a new laptop for instance) or stationary or a website. Business Link might be able to help there. There is probably extra help for mothers returning to work so I would contact the Job Center and your local council too.

I could well be wrong about some of this so check the facts and good luck

You don't get grants these days for capital purchases eg. laptop, stationery or website. I have tried to get money for my self employment and it has been impossible despite living in a regeneration area. Business Link may be able to point you in the direction of grants but the usual thing with grants is that they are usually awarded for a specific project and you would have to put up half of the money yourself. If you are on JSA, when you sign off you will get £100 as a goodbye gift.

You will get more WTC as a parent than you would if like me you never had kids. Speak to HMRC as they are very helpful. https://www.hmrc.gov.uk

dekh

Horace wrote: »

You don't get grants these days for capital purchases eg. laptop, stationery or website.

Well, it depends...

I made a quick call and where I am...

North Tyneside Council will do a 50% grant for capital purchases including:
tools, equipment, machinery, office furniture and certain things for premises. Also for a website. (Forgot to ask if they exclude IT equipment.)

Business Link will do grants for marketing and website.

Project North East will do low cost loans (apparently better than bank rates) but are getting hot on credit history.

So I'd get in touch with as many organisations in your area as possible to see what is floating about in the pot and new business advisors should know what you can get.

It's well worth a couple of phone calls.

NotQuiteNorbert

Thank you all for your replies. Given me some things to think about.

x