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Q for sis re TC, employment and self employment
brians_daughter
Posts: 2,148 Forumite
Hello. My sis has just called and asked my advice on this, i have no idea, but know some of you guys will be able to help.
She currently has 2 children and is a single parent. She works 25 hours a week in quite a well paid role and gets some TC (sorry for all the vagueness here, but I don't know how much she gets).
She used to be part time at work and be self employed every other weekend, this stopped when the children were born, and she was just an employee. She wants to go back to doing some self employed stuff. Mainly selling items at craft fairs and the likes. Initially she wont take any money for pay as she will want to buy more stock to make her crafty items and offer a wider range of items.
She was talking to HR about the self employed stuff as in her contract she needs to make them aware of it and she needs their permission to do any other work. The HR manager has told her in these words 'it will play havoc with your tax credits. The every other weekend work will push you over the higher hours bracket but HMRC wont accept the changes if you aren't drawing a wage'
My sis has NO IDEA what this statement means but is seemingly convinced that this HR manager knows her stuff and is concerned as to what this lady means.
She's doing this as a way to earn extra money and will obviously be registering as self employed, its not a scam or anything. But as you can imagine what she is starting off with stock wise has come out of her own pocket so it makes sense if she takes say £150 on her first weekend then it makes sense for her to invest the whole £150 back into stock to widen her range. She will eventually be taking a wage from the sales but wants to concentrate on building her range rather than earning extra in the short term.
I have googled it but i don't know where to start. I told her that as long as she is registered with HMRC as self employed and pays any monies due for tax and NI etc I cannot see how tax credits (which unless i am wrong IS HMRC) would be concerned about her weekend role as long as any money she makes is included in any future tax credit calculations?
Anyone any advice as to what the HR lady was on about? She did ask her to explain but she said it was conflict of interest as she didn't want to be giving advice about self employed positions.
She has called them to tell them but they said she needs to tell them when the change happens, not before so to call back a week Monday after she's done her first craft fair.
TIA
Anna x
She currently has 2 children and is a single parent. She works 25 hours a week in quite a well paid role and gets some TC (sorry for all the vagueness here, but I don't know how much she gets).
She used to be part time at work and be self employed every other weekend, this stopped when the children were born, and she was just an employee. She wants to go back to doing some self employed stuff. Mainly selling items at craft fairs and the likes. Initially she wont take any money for pay as she will want to buy more stock to make her crafty items and offer a wider range of items.
She was talking to HR about the self employed stuff as in her contract she needs to make them aware of it and she needs their permission to do any other work. The HR manager has told her in these words 'it will play havoc with your tax credits. The every other weekend work will push you over the higher hours bracket but HMRC wont accept the changes if you aren't drawing a wage'
My sis has NO IDEA what this statement means but is seemingly convinced that this HR manager knows her stuff and is concerned as to what this lady means.
She's doing this as a way to earn extra money and will obviously be registering as self employed, its not a scam or anything. But as you can imagine what she is starting off with stock wise has come out of her own pocket so it makes sense if she takes say £150 on her first weekend then it makes sense for her to invest the whole £150 back into stock to widen her range. She will eventually be taking a wage from the sales but wants to concentrate on building her range rather than earning extra in the short term.
I have googled it but i don't know where to start. I told her that as long as she is registered with HMRC as self employed and pays any monies due for tax and NI etc I cannot see how tax credits (which unless i am wrong IS HMRC) would be concerned about her weekend role as long as any money she makes is included in any future tax credit calculations?
Anyone any advice as to what the HR lady was on about? She did ask her to explain but she said it was conflict of interest as she didn't want to be giving advice about self employed positions.
She has called them to tell them but they said she needs to tell them when the change happens, not before so to call back a week Monday after she's done her first craft fair.
TIA
Anna x
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