Craft business tax credits

EleanorRig

Hi

I would advice on how to go about starting an online craft business. I'm a single parent and I currently work 25 hours a week and receive tax credits, but if I were to become self employed how would that work with regards to tax credits, etc?

Thanks

Hammyman

You would give them a projected income to the end of the current financial year which would consist of your paid employment plus any projected profit you worked out in your business plan. Your income would be PAYE + S/E profit or PAYE - S/E loss.

For the first trading year, its wise to give a low estimate and then phone them with a revised one around November if its wildly out. That way you get the money when you need it (when its starting) and have 5 months for them to adjust payment so there's no overpayment made.