If I Started Online Business, How Much Tax Credit Would I Get?

Truegho

I am contemplating setting up an online business - earning from perhaps Adsense and affiliate commissions - and I want to know roughly how much Tax Credit could I expect to be awarded if my site wasn't earning much in the first year of its launch.

I also need to know if I would be entitled to this £50 Jobcentreplus gives to a newly self-employed person coming off JSA.

I really want to work for myself, as I am FED UP with the whole depressing business of signing on and hunting fruitlessly for jobs.

In regard to my status, I am 49, single, and have no kids. So do you think self employment would be a good idea?

lauzellen

Do you realistically think you can get 30hrs a week from such work?

karenx

Plus with being self employed you need to complete tax returns etc, which costs you.
Would you be able to make money from this online business to cover accountants etc?

Truegho

But would I really need accountants?

karenx wrote: »

Plus with being self employed you need to complete tax returns etc, which costs you.
Would you be able to make money from this online business to cover accountants etc?

tod123

You can easily spend 30 hours a week working on your websites

No need for an accountant , just self assessment taxes online

You can get the full whack of tax credits

Truegho

Yes, that is exactly what I thought. You're right. No need for accountants as you can do all the tax self assessment etc. online.

tod123 wrote: »

You can easily spend 30 hours a week working on your websites

No need for an accountant , just self assessment taxes online

You can get the full whack of tax credits

zagfles

Truegho wrote: »

I am contemplating setting up an online business - earning from perhaps Adsense and affiliate commissions - and I want to know roughly how much Tax Credit could I expect to be awarded if my site wasn't earning much in the first year of its launch.

I also need to know if I would be entitled to this £50 Jobcentreplus gives to a newly self-employed person coming off JSA.

I really want to work for myself, as I am FED UP with the whole depressing business of signing on and hunting fruitlessly for jobs.

In regard to my status, I am 49, single, and have no kids. So do you think self employment would be a good idea?

Rates are here http://www.hmrc.gov.uk/rates/taxcredits.htm

Basically if you're single with no disabilities/kids you'd have to work 30+ hours as others have said, and you'd just get the basic element of WTC plus the 30 hour element (1920+790), which would be reduced by income over 6420 (39% this year, 41% next).

tinktinktinkerbell

if you are a couple with no kids do you get basic element + couples element + 30 hour a week element

or do you just get couple + 30 hour

hillendale

Truegho wrote: »

I am contemplating setting up an online business - earning from perhaps Adsense and affiliate commissions - and I want to know roughly how much Tax Credit could I expect to be awarded if my site wasn't earning much in the first year of its launch.

I also need to know if I would be entitled to this £50 Jobcentreplus gives to a newly self-employed person coming off JSA.

I really want to work for myself, as I am FED UP with the whole depressing business of signing on and hunting fruitlessly for jobs.

In regard to my status, I am 49, single, and have no kids. So do you think self employment would be a good idea?

Hi
Self-employment credit payment is £50 per week and is paid for 16 weeks but you must have been receiving JSA for a minimum of 13 weeks
you must also 16 hrs a week and have minimum of 5 weeks work.
( this scheme is due to end in March 2011 so you need to be quick )

Working tax credits will be based on your personal circumstances and your earnings for tax year 2009-2010. As a single person i think you'll need to be working 30hrs a week minimum. You can google tax credits for a on line entitlement calculator it should give you an approx idea.
hope this helps

zagfles

tinktinktinkerbell wrote: »

if you are a couple with no kids do you get basic element + couples element + 30 hour a week element

or do you just get couple + 30 hour

basic+couples+30 hour

parsons

Truegho wrote: »

Yes, that is exactly what I thought. You're right. No need for accountants as you can do all the tax self assessment etc. online.

HMRC hold regular workshops for the newly self employed. I have been on some of them a while ago and to be honest they were excellent. I put the idea on the back burner as I could not see any future in it. But now that I can, the info that they gave me is well worthwhile.

If you want to know everything and anything to do with self assessment get onto the HMRC website and put in 'workshops for the self employed'.

Good Luck.