Tax Credits and Self Employed

mustkeephoping

Both my husband and I are Self Employed and I'm really confused about Tax Credits or if we could be entitled to them. My understanding is that they are calculated on the previous year's income - therefore can someone please clarify a couple of things for me:

2009/2010 - Husband Employed, earned 30k, me self employed 4k net profit

2010/2011 - Husband started own business and we have lived off savings but are really struggling right now - Husband expected net profit 2k (invested 15k in start up costs), me net profit £3k

Would we be entitled to anything, or should we have claimed much sooner?

Another question - we are expecting much higher profits next year, so would this affect our claim.

Sorry, so many questions but we've never claimed anything before but could really do with a bit of help right now and the last thing I want is to make a claim then have to repay anything.


Thanks

MrsManda

Depending on how many hours you work it may be possible to claim Working Tax Credits
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/TaxCreditsandChildBenefit/TaxCredits/Gettingstarted/whoqualifies/WorkingTaxCreditthebasics/DG_172728

Use this quick questionnaire to see if you're likely to be entitled:
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/TaxCreditsandChildBenefit/TaxCredits/Gettingstarted/whoqualifies/DG_181268

mustkeephoping

Hi thanks for getting back to me so quickly - I did the questionnaire last night and if I put 2009/2010 earnings it's little/nothing - but a significant amount if I put in this years (2010/2011) net profit for us both. I'm still really confused about whether we would be entitled to anything based on 2010/2011 profits when we expect a significant increase next year? In other words, if we put in a claim in April 2011, can we expect Tax Credits to be paid until April 2012 based on 2010/2011 earnings.

My questions are probably as confusing as I am confused

Hammyman

Yes, that would be the case. The following year you'd lose some/all based on the 2011-12 figures.

mustkeephoping

Thanks for that - I THINK I understand it, but sure scares me, seems a bit surreal that we've never had to claim anything EVER, and potentially we could get a lot of help right now (albeit short-term as we are working on increasing profit for next year and have very little savings left .

On a positive note - having been faced with a negative balance at the end of the month sure as eggs has kicked our @rses to look at our expenditure - suprising what savings and discipline we have managed to achieved in 4 weeks !!!

If anyone can offer any further advice - please help

Thanks MKH ...........

monicaj

Cheekily bumping for any further advice........

That is not to say that I am not grateful for the advice received so far but I feel I need some more reassurance that I am not misunderstanding that there is benefit available to us during this difficult time

Thanks

Hammyman

Ring up the tax credits helpline and talk directly to them. Best advice I can give.