complete newbie to self employed!

Wywth

So what does your business plan projections show for profit after year1, year 2 and year 3?

niecsey

Pass!! Seriously haven't thought too far ahead building customers up etc, Likei said l can only physically do x amount in any given week Due to health .

Savvy_Sue

I think where Wywth may be going with this is that there are changes coming in to the benefits system to cut down on people claiming to be self-employed but never making a profit, yet able to claim some benefits like Working Tax Credits because they are working 16+ hours pw.

I don't know if it also applies to Child Tax Credits (but I suspect it does), and I don't know when it starts.

However the end result is that you could possibly lose your tax credits (whatever sort they are) because you are running an unprofitable hobby business, yet the assumption will be that you are earning at least minimum wage for at least the minimum no. of hours you have to work in order to claim tax credits.

I hope someone who knows more about this than me will post the details ...

niecsey

Thanks sue. Didn't know that either anyone who knows baking buisness home baker knows.

Big fat profits never going to happen. It's all pay out! Still want to give it a go !

niecsey

Ps l don't get benefits

Savvy_Sue

You mentioned Working Tax Credits. I don't know how to put this any nicer: if the government is giving you money you haven't done anything to earn, it's a benefit ...

there's an 'Up Your Income' board, I believe there's a home baking thread there (although I can't see it on the first page and I haven't got time to go and hunt it out, sorry!)

niecsey

Thanks will go look

rickyroma

I am in a similar position to the OP.
Except I will be working full time and trying to do my new service from home ( hope to go part time eventually)
I have searched the net for an easy to follow guide to registering the company for tax, vat etc but cant seem to find one .
Anyone got a link.. will help the OP too hopefully

niecsey

Hi go to hmrc site lots of info good luck

Savvy_Sue

There's a thread here which gives a brief summary of the concerns I was expressing earlier re claiming benefits / tax credits.