Self- Employed

Umm_jannah

Hiya,

Im an dressmaker and i dont really earn much around 60-70 a week coz i work only 20 hours a week. Thats 4 hours mon-fri while the kids are at school/nursery. What i want to know is that i get paid cash in hand, i have a diary of all the hours i work also a reciept book where i once i get paid i give my customers reciept. I dont put the money into my account coz i use it for my daily groceries etc. Is that enough evidence that iam self employed to get help with working tax?? I have registered as self employed. Every 3 months i buy threads and needles and stuff but coz i get it from the market i dont have any receipts but i do write it down in my work diary the day i bought the stuff and how much for.

Notmyrealname

You've registered as self employed so that is enough. You may be asked to prove your income so for that you need a set of books. You really do need to get receipts for the money you spend on equipment etc.

Your income for tax credits purposes is the money you make minus tax deductible expenses. I strongly suggest you see your local Business Link and see about a basic book-keeping course.

karenx

As your using the money for groceries etc that is your wages from the business you are spending. You need to set your business up properly and put the money into an account then pay your wages from it. And also keep receipts for everything for your books

Firefox1975

You need to setup a spreadsheet showing incomings and outgoings.

It sounds as if you are currently withdrawing all of your income as drawings!this is a bit dangerous.

Where do you buy your materials from?!? surely you understand that whatever price you charge - minus the cost of goods used to produce the garment = Profit

Profit is taxable by HMRC and will usually be a positive figure for someone in your line of work.

Have you ever filled in a Tax Return? Did you go on any courses when you set up?

To answer your question - No, what your are doing isn't enough to justify WTC and if you enquire to HMRC you may be opening yourself up to a lot of disclosure about your business.

Umm_jannah

Thanks everyone for your advice. Im going get everything sorted properly and then see if i can claim tax credit. I love this forum, you always get great advice xx

Notmyrealname

Get yourself over to the Cutting Tax forum for some really good advice.