Need to increase income. How woud a new business or earnings affect WTC CTC HB CTB?

spike2012

Hi all

Firstly, my partner and I had a beautiful daughter on 13.2.10 :beer:. I am 21, and full time employed. We had to wait until our daughter was born to be able to claim tax credits as I am under 25.

This happened, and I managed to get a p60 substitute from employer, stating 08/09 earnings for me was £13,189

My partner doesnt work and she claims disability.

We were awarded about £60 CTC, paid to my partner weekly, and £53 WTC paid to me weekly. We receive housing benefit and also a council tax reduction.

The estimate I gave to HMRC for this tax year just ended, 09/10 was 15650. (my salary was 15,337 plus I worked extra at xmas)

the letter theyve sent says CTC will be reduced to 40-50 something a week, and my working tax credit reduced to £38 a week.

I had my march pay slip and it says "taxable pay to date £14038" The way our pay works, is we are paid 23rd of every month, and one week in advance (:think:) so would this mean that by 5th? 6th of april, I will be looking at the year 09/10 figure being about 14,300?

If this is the case, will the CTC and WTC payments go up? The actual and estimate will differ because I lose almost all pay when off sick (just SSP) and also lost money for 2 weeks paternity (got SPP)

Thats that part. The housing is speedy with changes in ciircumstances (apart from paying us for a 2nd room allowance, as they have not updated our payments since our little'un has been here ) so if i get re-graded this year (pay rise) I can inform them at the time.

If I get the pay rise, is it best to tell HMRC right away? I do not want any kind of overpayment at all!:eek: lol. I am unsure how this would affect any current payments?

My last question (and thanks for anyone who responds to this!) is that I have a burning desire for success. My head is full of ideas, I feel determined, but (as my partner says my personality is similar,) I am "put off/cautious" when it comes to tax, declarations, etc etc

I would like to start a (business?) where I simply help the local residents around me with something I have in mind. Although the profit would be small, how do I declare this as income? How does my tax change? Can I pay a member of my family to work for me (as I work full-time as is)

ugh... so many questions and they feel like massive hurdles. It feels harder to try and be honest and declare everything than not to. grr:(

P.S since I have been on WTC and CTC my tax code has not changed. Should this happen? Also, do I get any kind of tax rebate or is that only if I become unemployed?

Thanks for any help!!!

Spike

hermum

Can't help with FTC WTC, but are you eligible for help from the Princes Trust with the business idea? If it's a community project it may also be worth speaking to your local council.

spike2012

I had forgotten about Princes trust. I will look into this.

Can anyone help with the other things?

Thanks
Spike