Evidence of self-employment for working tax credits

earthbound_misfit

Hello there...
I have been unable to work due to mental health problems for some time. Currently claiming no benefit as stuck between ESA and JSA (probably for another post...) hence the urgentness in sorting this out.
Basically, I am planning to become self-employed in a small, web-based way. I have been developing this plan 'on the 'side' for ages and am doing a self-employment course (via the jobcentre) that covers the basics I need to know. I have previously made money this way in an ad-hoc way, so I know what I'm doing and have been working on the business but not actually started selling stuff yet.
I had planned to have everything ready to go for when my course finishes, and to officially become self-employed the same day I make the website live.
However, I was thinking about registering as self-employed now and putting in a tax credits claim. I am already working on the business, as I said, but without the stress of JC+ and the rest, I could plough all my energy into it (would be way over 35hrs required for tax credits). Obviously I need the tax credits to supplement my income as I startup!

So really I'd like to know how much proof tax credits need?


*Background: I've been unemployed for almost 3 years, and never in steady employment before that, due to my mental health issues (trauma related depression and intrusive memories). So I am basically unemployable, and I know I couldn't hold down most jobs at the moment. But this business idea and working on it gets me all fired up as well as offering the flexibility I need...

Icequeen99

earthbound_misfit wrote: »

Hello there...
I have been unable to work due to mental health problems for some time. Currently claiming no benefit as stuck between ESA and JSA (probably for another post...) hence the urgentness in sorting this out.
Basically, I am planning to become self-employed in a small, web-based way. I have been developing this plan 'on the 'side' for ages and am doing a self-employment course (via the jobcentre) that covers the basics I need to know. I have previously made money this way in an ad-hoc way, so I know what I'm doing and have been working on the business but not actually started selling stuff yet.
I had planned to have everything ready to go for when my course finishes, and to officially become self-employed the same day I make the website live.
However, I was thinking about registering as self-employed now and putting in a tax credits claim. I am already working on the business, as I said, but without the stress of JC+ and the rest, I could plough all my energy into it (would be way over 35hrs required for tax credits). Obviously I need the tax credits to supplement my income as I startup!

So really I'd like to know how much proof tax credits need?


*Background: I've been unemployed for almost 3 years, and never in steady employment before that, due to my mental health issues (trauma related depression and intrusive memories). So I am basically unemployable, and I know I couldn't hold down most jobs at the moment. But this business idea and working on it gets me all fired up as well as offering the flexibility I need...

Are you actually going to be selling things? Or is it some sort of article writing/internet marketing based business.

When you claim they might not ask you anything. But you may be asked later to prove the hours you worked.

I would suggest from the start you keep a daily diary of the hours worked and what you did in those hours.

If you have one website selling things and there isn't much selling going on initially - what will you do for the 35 hours?

IQ

zzzLazyDaisy

Also do be aware that the business does genuinely need to have the capacity to become profitable. Under tax credits the amount you earn is less important than the hours you put in, but under UC once the first year has passed, you will be deemed to be earning the baseline NMW for your declared hours, even if you actually make very little money.

earthbound_misfit

zzzLazyDaisy wrote: »

Also do be aware that the business does genuinely need to have the capacity to become profitable. Under tax credits the amount you earn is less important than the hours you put in, but under UC once the first year has passed, you will be deemed to be earning the baseline NMW for your declared hours, even if you actually make very little money.

Thanks, yes I'm aware of this, hence wanting to put 100% into it and also get registered asap! I's quite scary cos I'm well aware I'm practically unemployable in most jobs, feels like this is my one shot... Also quite exhilarating though.

earthbound_misfit

Icequeen99 -
I will be selling things that I produce. Was waiting to get a good selection together to launch the website(s) (I have various at present non-live 'shops' on other sites too, but have been offered free web hosting by a friend working in this field so thought I might as well have my own/website to link to!) I've also been producing stock, photographing it, working out advertising etc.

harrys_dad

Good luck!