Self employed & PAYE & Tax Credits

Hard_food_for_midas

I have been self employed for many years, but not making much more than the single persons allowance. I've now taken on a part-time job on PAYE, but I am going to spend about half my income (£10,000) on an admin assistant.

As a self-employed person, I know I could write that £5K to pay someone off against tax. Can I do this under PAYE? Do I just tell the revenue?

Also, because my income is so low, I get fairly generous tax credits - about £7,500 per year.

I am worried that the £10,000 I'm about to start earning will cancel itself out with less tax credits. Can I just tell tax credits that what I actually take home will be £5K (or will they insist on doing their calculations based on my gross income?)

Thanks

Hard_food_for_midas

Thank you. I can deal with it through my SA return.

My problem is, I have to tell Tax Credits when my circumstances change. I have just anonymously asked how my tax credits would be affected given I have taken this job - and it looks like we as a family - will take a hit of £4,615. It's not worth taking the job! Not if I'm going to pay an admin person £5K. I am effectively working for nothing. This can't be right, can it?