Starting up business and WTC

SJI85

I am considering starting up my own business, providing application support and information to university applicants and current university students (with a particular interest in students with disabilities). Another option is to start my book selling again.

Whichever I chose, I am pessimistic that I will actually make any money. Nevertheless, it's something I'd like to try for a year while also working part-time (Zero Hours term time only contract).

As I have a disability I only need to work 16 hours a week.

If come the end of the next year (April 2015) my income for the tax year is only, say 2k, would this cause issues with working tax credits? Is it expected that those with a business make at least minimum wage for the hours worked?

SJI85

blondebubbles wrote: »

Tax credits for the self employed will accept what you report your profit is on your self assessment, even if that is zero or a loss.

You will need to keep accurate records to show you have worked the required number of hours each week.

From what I've heard, it's Universal Credits that plan to class the self employed as earning minimum wage but I haven't read a lot about it as it could be a couple of years before that comes in.

Yes. That was my understanding. It is only hours worked that matters (in terms of eligibility). I heard rumours that this would change under UC and those who don't make at least minimum wage will not be eligible/get transferred.

In terms of hours worked, will this include things such as developing a website, marketing, and admin? Or just work that I'm actually paid for?

tomtontom

Sorry to say that I think the university idea is a non starter. That type of advice is available for free, either via the internet, schools and university support services. If someone was to pay for such a service they would be expecting something very special, for you to have knowledge and expertise that is not available elsewhere. With that comes a level of liability, I could quite imagine someone paying for such a service to sue if they did not get the outcome they were looking for.

Maybe you could ask for opinions on TSR, see if people would be interested and what they would expect from you?

SJI85

tomtontom wrote: »

Sorry to say that I think the university idea is a non starter. That type of advice is available for free, either via the internet, schools and university support services.

Yes, I know. This is why it's more likely I'll re-start bookselling.

I'm also, erm, very familiar with TSR (and it's no good using TSR to gauge support as the moderators would not allow it - it would count as promotional activity).

There are one or two companies around but they all look like crooks to me. One of the more credible companies are a Medicine Mentoring company, who are actually an Official Rep on TSR, and even they look dodgy.

However, there is a chance that I can develop a project with a local organisation and work as some kind of Education Officer on a self-employed basis, specifically targeting those from deprived areas who may not have access to informed staff at home or at school. Or ex-offenders in the 18 - 24 year range.

SJI85

So just to be clear, if I were to start a business and, in its first year, I made no money whatsoever, I can still claim WTC providing I spent 16 hours a week "working" (contacting wholesalers, visiting car boot sales for stock, advertising via social media, administration - activities which don't necessarily make money) and make an accurate record of these hours?

So, for example, a book selling company with only a handful of sales during a year? I worry that they'd investigate and find my case fradulent.

All I'm after is a small part-time business to do alongside my zero hours term time contract.

If at the end of the first year I haven't been able to make the business a success I have no complaints in looking for a job. But by this time I may be going off to travel/back to university anyway.

Icequeen99

SJI85 wrote: »

So just to be clear, if I were to start a business and, in its first year, I made no money whatsoever, I can still claim WTC providing I spent 16 hours a week "working" (contacting wholesalers, visiting car boot sales for stock, advertising via social media, administration - activities which don't necessarily make money) and make an accurate record of these hours?

So, for example, a book selling company with only a handful of sales during a year? I worry that they'd investigate and find my case fradulent.

All I'm after is a small part-time business to do alongside my zero hours term time contract.

If at the end of the first year I haven't been able to make the business a success I have no complaints in looking for a job. But by this time I may be going off to travel/back to university anyway.

In theory yes, in reality they will probably investigate the claim if you are declaring a loss or zero profit and working 16 hours a week.

When they investigate they will look at whether the activities you have recorded are 'in expectation of payment', HMRC define this as meaning more than a hope of payment. So they decide that the hours you have done you had a hope of payment but no real expectation if you weren't actually generating any sales.

'Research' and time spent web browsing is often not accepted. Actually listing books to sell online would suffice even if they don't sell.

You won't really know unless they challenge, and then you would have to appeal. If you have kept good hours of each hour and what you did then that will help.

IQ