Employed to self employed gradually - advice needed

Whitehorse_2

Hi
I'm currently full time employed earning a paltry £200 a week (I come out with that) . I want to go self-employed gradually over a couple of years - reducing my days at work as I pick up more work.
Last time I went self employed I walked out of a job with absolutely no savings and lived off a loan for a year before realising my business idea was a non-starter! Don't want to do that again *grin* but I learned my lesson and am a lot more business savvy than I was!
This time I want to build streams of income (I'm a musician and plan on building up gigs and teaching plus doing some web design).
However I'm confused about how my tax credits will be affected and will I suddenly be taxed loads more?

I imagine my employed job will be the bulk of my earnings for some time.

Can someone offer me some advice on this?
I absolutely hate being employed!

I don't have any dependants and don't claim (or want to claim) any benefits - just tax credits whilst I have to.

My income is too low compared to my out-goings to save money as a nest egg to live off so I can leave work and start my self-employment so I have to do it this way.

Any advice would be appreciated - especially if any of you are doing something similar.

shameless-about-money

You are still entitled to tax credits when self-employed, the same as when in employment.

The key issue with tax credits is the amount you earn and the hours that you work.

You should still be able to claim WTC for a good while after starting self-employment, whilst you do the shift across.

I am self-employed and I claim WTC since being off sick and now registered disabled.

fay66

how much can you claim wftc is it the same

shameless-about-money

Of course it is the same! It is all based on income and hours worked.

I work over 30 hours per week, so I have the added monies because of that.

There is no difference, just that as self-employed your money is self-earned and not being paid by an employer.

Daisies

I'd ring the Inland Revenue. I found them extremely pleasant and helpful when I went self-employed two years ago and they could answer any questions very quickly!

Whitehorse_2

Hi all
Thanks for your replies. Yes I remembered that tax credits are still payable whilst being self-employed. I wasn't sure of how it worked though when being in work and being self-employed at the same time. Perhaps it is as someone said, just according to the hours worked and amount earned.

I don't expect to be earning a massive amount self-employed initially but of course hope it grows.

However I should say after reading some stuff on 'positive thinking for the musician' of course now I'm fully anticipating world wide sales, villa by the sea, studio in the basement etc, etc.