Going self employed help please

dawn_rose

Hiya i'm wanting to set up an etasy shop to sell the things i make, I'm a mum of three 7,5 and 2 and can fit this around the needs of my children so no childcare required. My dh works full time plus has a voluntary job he does this for exspenes. Before i take the lundge will i loose tax credits if i do not make money? (first year is always hard), am i still entitled to tax credits if self employed?

Many thanks
Dawn.

simplydevine05

Yes you are provided you work the minimum number of hours they require and provided your joint incomes do not go over the maximum thresholds. You will have to estimate your income for the tax year and keep an eye on it to avoid over payment, however the new universal credit will change this and you will have to submit accounts every month, as well as being expected to earn at least minimum wage from your business. Neither of these are any good for a new business or a retail businees where income can go from many minus to plus from one month to the next.

paulineb_2

Im self employed, I get tax credits, if you go on the HMRC website it gives you guidance re this and other aspects of setting up a business and yes the new universal credit will change things but it may not kick in until 2016-17 but be aware that when it does they expect people to make the minimum wage for every hour worked and as the poster above said, sometimes takings fluctuate at times.

You will need to register as self employed with HMRC, you have 3 months to do this from starting up and I would also be informing the working tax credit people about your change of circumstances.

leveller2911

You will be required to fill out a self assessment tax return each year and possibly have to pay class 2 National Insurance and dependant on your income class 4 National Insurance.

Why do you say "first year is always hard" ? I 've been self employed for 25 years and know many self employed people and my 1st year was fantastic and I wouldnt say it was hard, just different to being employed.I've never looked back as did most of the people I know.

Its as hard or easy as you want to make it.If your driven and want it to succeed ,put time and effort into it then it will succeed if you don't and just see it as a way of keeping maximum tax credits etc you will fail.

Good luck and hope you make a go of it........