I'm thinking of getting off ESA and onto self-emplyed WTC; please advise...

Ally1205

I have been receiving ESA since April, due to limited capacity to work due to illness (CFS). I desparately need to increase my income in any way I can. I'm also terrified of getting booted off ESA and onto the lower-paid JSA. For these reasons I want to look into the possibility of going on WTC instead of ESA. I could handle maybe 18 hours of self-employed work per week, so I'm thinking about trying to get WTC rather than the ESA, so that I can earn money pert-time. In the previous tax year, I earned only a £50pw carer's allowance, because I was caring for my late mother. Can anyone clarify the following:

1) If I go self-employed, part-time, I'd like to dabble in a number of different trades, rather than be limited to one. For example, I may want to do some gardening, some graphic design, and perhaps some retail. Can I declare myself to the taxman as something rather vague such as "jack of all trades" or "diverse odd-jobber"? Or do they require me to be of one specific trade?

2) Do I need to write a detailed business plan in order to qualify for WTC?

3) Are there other benefits I might be entitled to, at least at the beginning of my self-employment, while I am building up some kind of customer base and spending time on R&D?

Many thanks,
A

mum-of-3

1) If I go self-employed, part-time, I'd like to dabble in a number of different trades, rather than be limited to one. For example, I may want to do some gardening, some graphic design, and perhaps some retail. Can I declare myself to the taxman as something rather vague such as "jack of all trades" or "diverse odd-jobber"? Or do they require me to be of one specific trade?

If you are self employed you just need to tell them the amount you earn as a self employed person. So if you decide to gardening and odd jobs, keep a book of all you expenses, incomings etc. Keeping all receipts and then if you do graphic design do the same and at the end of the tax year you will put both the accounts against each other and declare your earnings.
If you open a business account at Barclay's they normally offer for you to see a local account, which would be advisable if you plan to do more than one thing!

2) Do I need to write a detailed business plan in order to qualify for WTC?

WTC don't need to see a business plan but if you are planning on doing a business it would be advisable to do one. If you use the link below this will help you do a business plan.
http://www.princes-trust.org.uk/pdf/BusGuide_BusinessPlanb.pdf
As soon as you decide to do it or buy anything ready for the business phone up HMRC and advise them you would like to register as self employed.
Then phone tax credits and tell them how many hours a week you are working and your estimated income for the year. If you do a business plan the figures will help you out with this!

3) Are there other benefits I might be entitled to, at least at the beginning of my self-employment, while I am building up some kind of customer base and spending time on R&D?

WTC, CTC dependant on children and the amount of hours you work

Return to work job grant- which I think is between £100-250 depending if you are single or a couple

Back to Work credit information on the government website- dependant on how long you have been on ESA for, you will then need to work over 16hrs a week and its £40 a week for 12mths!



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Ally1205

Thank you very much for the help, Mum-of-3.

A