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Self Employment and Tax credits
NEH
Posts: 2,464 Forumite
Just trying to fill this renewal in and think I have got it sorted based on the last 2 years.
Our problem is how to work out how to explain our changes to the tax credit lot...
Hubby has now taken his first salary from his business and they have enough in the company to pay until the end of the year but not necessarily beyond that if no more work comes in which at the moment is unlikely...
So what do i tell the tax credit lot, that yes hubby is earning but only for 6 months odd? Is our current tax credits based on last year's earnings?
Just getting a bit confused by it all...
Our problem is how to work out how to explain our changes to the tax credit lot...
Hubby has now taken his first salary from his business and they have enough in the company to pay until the end of the year but not necessarily beyond that if no more work comes in which at the moment is unlikely...
So what do i tell the tax credit lot, that yes hubby is earning but only for 6 months odd? Is our current tax credits based on last year's earnings?
Just getting a bit confused by it all...
0
Comments
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Is he a sole trader or did he form a Ltd Company? If its sole trader, its easy - just give a predicted gross profit figure for the year. If its a Ltd Company, he needs to work out what he's drawing from it in wages or a dividend for the year and tell them that. If it varies wildly, he can always ring up around November and give an update and get payments adjusted accordingly to either not end up being paid too much or to get a bit extra if income is considerably less.
They understand self employed are basically taking a stab in the dark guess to a point and it all gets sorted out the following year when you do the renewal.0 -
Is he a sole trader or did he form a Ltd Company? If its sole trader, its easy - just give a predicted gross profit figure for the year. If its a Ltd Company, he needs to work out what he's drawing from it in wages or a dividend for the year and tell them that. If it varies wildly, he can always ring up around November and give an update and get payments adjusted accordingly to either not end up being paid too much or to get a bit extra if income is considerably less.
They understand self employed are basically taking a stab in the dark guess to a point and it all gets sorted out the following year when you do the renewal.
He's a limited company...
Hopefully we should still get something each week as the salary he has taken is only enough to cover rent and council tax....0
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