Upping income when on HB Tax/cred

spike2012

Hi all

I currently work full time qt 37 hours a week for a reputable firm repairing streetlights etc.
Through this and through training schemes (Im completing a trainee ship) I have gained some skills in labouring, re-instating, cementing, using instant tar mac, digging (and avoiding underground services) ETC with tickets for using a jack hammer, disk cutter, hand tools...

I have been approached many a time for the "odd job" Including cementing a drive, potholes on long drives etc. Various small stuff.

Whilst I know most of the workforce I work with would just do this of an evening, I am in receipt of housing benefit and child/working tax credits.

It is something I would like to legally sideline in, when time is available and family permitting etc, to undertake these repairs and other things people may need doing. There is always talk of redundancies and if I had something small "on the go" there would obviously be a potential for expansion should the worst happen and I am short listed to go...

Could I:
Set up a business account with a bank, leave all money in the account I receive from people into that account, telling housing benefit (so they reduce the HB payments that month) and fill in end of year tax return, in order to pay basic tax and NIC? Then whatever remains is ours?

Or

Could I pay myself a wage per job, paying tax and NI somehow, and then telling HB that £X is my additional income and to reduce housing benefit accordingly.

Its always something I'm put off doing because it seems so complicated to go about things "honestly" - I'm not saying its easy to be dishonest, and thats something I am not, but its something my father always said and I can see his point. It seems extremely cumbersome for something that may only be 1 job a month..

Any help is much appreciated,
Spike

ButterPie_2

All you need o do is register as self employed with tax, and keep records. At the end of the year you will have to file a tax return, and pay tax, but it shouldn't be too much for ad hoc work. You then need to estimate what you will make over the year, and tell TC/HB what your average monthly profit will be (I know, it's hard to guess, but you can change it)

No need for a business bank account, unless it becomes a major thing.

Google "business link", and see if they have a branch in your area for face to face help, or often the local tax office does classes in keeping records, but it isn't hard for a venture like yours.

property.advert

I suggest a new bank account but it does not have to be a business account and in fact, I would not tell the bank what it was for, or just say it is for bills or some other such nonsense.

As for HB and TC then you would be well served to build up a spreadsheet, if you can, which will show you what you would be entitled to at varying levels of income.

As for how much to declare to start with, I would seriously think whether you will make anything as you will have significant expenses. You should consider this before making any changes or asking unqualified people in local government to base decision on their highly illogical guesswork.

ButterPie_2

Have a look at https://www.entitledto.co.uk - you can run calculations and go back and change things, so it is brilliant for working out where you would stand.

spike2012

Thanks for the replies,

The sad truth of it is, for every £1 extra I earn, HB and TC are reduced by 85p - this is the problem I faced with this years end of year amount. The reduction in the benefits is 85% of what I earned in overtime *sigh*

So the same will be for this. But I dont want to stay on housing benefit and TC, I want to earn enough from my full time job to not need to be on it, and then again to save for a house etc... breaking free from the benefit trap so its nice to receive support and advice so thank you again. I will look into it closely. If a business makes a loss, does it counteract what I earn from my job or is it classed as £0? (I read on a calculator to put £0 if self employed made a loss)

Thanks again