Self employment and paye and tax credits

Everen

Hi i am new to this forum so forgive me if this has been asked before!

I have a small business that has done ok for the past 8 years but this year has been dire, I haven't take a wage from the business since June (sole trader) as its not making a profit so am thinking of taking a job earning £12900 per year I am worried about doing this and telling tax credits in case they add on the new wage to my estimated self emPloyment profit which is £18000 (was £15480 last year) per year and way out as not making a profit if I loose the tax credits I get now it's not worth taking the job has anyone had experience of this and how it works? Do they hold so much back incase you make a profit between now and April? This is looking unlikely

Thank you

Hammyman

PAYE is added to self employed income. HOWEVER....

When you get the job, you phone them to notify a change of circumstances. One thing you must do is give them a re-adjusted estimate of the net profit of your self employment. TBH when it looked like it was going to be a lot less than you were expecting, you should have done it already and they would have upped your payments. November is the month I usually give them an adjusted estimate if it looks wildly different as I have a better idea of where I am going to be.

I would phone tax credits tomorrow and notify them of an adjustment in the estimated profits. Your claim should then be re-assessed based on that new figure and your payments changed.