Self Employment - Tax Credits?

hjc1305

Hi
I am a silversmith and my jewellery has recently gone into a gallery where I am have started receiving about £100 a month. I was wondering what difference this would make to my benefits? Does anyone know? I haven't started declaring yet as it's only just started making money but wondered how this will affect things?

Many thanks
: )

HappyMJ

£100 a month profit or takings? Have you deducted your expenses to arrive at the £100 a month figure? You would have 41% of anything you earnt taken off your tax credits award next year.

hjc1305

Hi
No it's £100 cash takings at the moment without taking away materials etc.

HappyMJ

hjc1305 wrote: »

Hi
No it's £100 cash takings at the moment without taking away materials etc.

So virtually no profit then. Mileage can also be claimed at 45 pence a mile so it's unlikely you would have much profit on £100 of takings a month. It's borderline hobby. Are you undertaking this with the intention of making a profit? If so you should register as self employed with the HMRC. If there is no intention to make a profit at all and all money received is reinvested into your hobby then there is no need to register with HMRC or declare anything to the HMRC for tax credits. You need to make sure you ringfence the money though. Don't let it be confused with your own money. So open up a new bank account and call it "Silversmith" or something and buy all your materials from the money held in this bank account.

Charityworker

You need to register as self employed with the HMRC and it should have been done as soon as you started working for yourself so you might have to pay a penalty. This goes for whether you have made a profit or not. A lot of businesses dont make a profit until after 2 years anyway but you still have to declare all your outgoings and income. You should also let the tax credits know. I only work self employed about 10 hours a week but I still let them know and it affected my tax credits for the better as I now get the 30 hour element (I work for an employer as well).

shedboy94

hjc1305 wrote: »

Hi
I am a silversmith and my jewellery has recently gone into a gallery where I am have started receiving about £100 a month. I was wondering what difference this would make to my benefits? Does anyone know? I haven't started declaring yet as it's only just started making money but wondered how this will affect things?

Many thanks
: )

Presumably from the title of the thread - Self Employment - Tax Credits?, you are currently claiming Tax Credits........how many hpw are you claiming to work?