Been offered a job, how will this affect my tax credits? Casual work.

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Hi,

Desperately need some advice as I have to give an answer in tomorrow (The answer will be yes)

I'm a single parent, self employed, working 16 hours, earning slightly less than minimum wage. My small business is growing slowly, and I think i'll be hitting minimum wage soon and I will be upping my hours to 24.

Ok, i've been doing some work experience as a side line for a huge corporation, it went much better than expected and they have offered me a job. The problem is that it's casual work to start off, working as and when they need me. Each shift is between 2 and 3 hours. Pay hasn't been spoken about yet, it will be spoken about tomorrow, but as it's entry level i'm assuming it will be minimum wage. They told me there is a chance they will give me further training and in the future I could be earning a salary.

What am I supposed to do in terms of tax credits? I'll be both employed and self employed so how will that work? In order to accommodate this new casual position I will have to reduce my self employed hours, so when I ring tax credits to tell them about this change how do I explain it, when I won't know from one week to the next what employed hours i'll be working? Would it be worth me giving my self employment up?

Really confused about it all, can anyone shed light?

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  • AutumnMoon
    AutumnMoon Posts: 40 Forumite
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    To continue to claim working tax credits you need to work at least 16 hours per week. After that your working hours don't matter unless they are over 30 per week as you get an additional element for doing so.

    What you will need to do is estimate your income. It is recommended that you over estimate your income to avoid overpayment.

    Thank you.

    The thing is, I can't guarantee that i'll get 16 hours a week from my new job, it may only be 8, for example, but I would then commit 8 hours per week to my self employment. Because it's casual I won't be paid if I go on holiday, if you see what I mean, because i'm not on a contract, i'm classed as a casual worker.

    Am I legally able to work as many hours as they offer me per week and reduce my self employment hours accordingly so that i'm not working too many hours? To be honest childcare issues won't allow me to work more than about 24 hours anyway.

    It's really confusing me.
  • alwaysskint96
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    AutumnMoon wrote: »
    Thank you.

    The thing is, I can't guarantee that i'll get 16 hours a week from my new job, it may only be 8, for example, but I would then commit 8 hours per week to my self employment. Because it's casual I won't be paid if I go on holiday, if you see what I mean, because i'm not on a contract, i'm classed as a casual worker.

    Am I legally able to work as many hours as they offer me per week and reduce my self employment hours accordingly so that i'm not working too many hours? To be honest childcare issues won't allow me to work more than about 24 hours anyway.

    It's really confusing me.


    Why would you cut doiwn the self employed hours if you are trying to grow the business? If you can get childcare for 24 hours then surely you could do the 16 you do now plus up to 8 on the new job Then if it goes well perhaps you could get more childcare
  • AutumnMoon
    AutumnMoon Posts: 40 Forumite
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    Thanks for the replies.

    The reason I mentioned ceasing self employment is that right now it doesn't appear to be viable. I've recently added another string to my bow, and I think that I could maybe grow it due to this, but it's not certain. If I scrapped my self employment I would have those hours to commit to the other job, but that being said the work may not be available.

    So here's a question, if I stay self employed 16 hours per week but don't earn NMW per hour worked, can I still keep the business up and running due to having another job that supplements my income, even though my hours per week aren't guaranteed?

    Second question, do I simply ring tax credits (who have just done a check on me to check if i'm genuinely SE, all came back fine as my book keeping was good enough and I had enough evidence) and tell them i'm still self employed @16 hours per week, but am also employed on a casual basis? How am I supposed to tell them how many hours a week I work, just guess? If I have no work for a couple of weeks from this casual job, will it affect my WTC? Am I just supposed to guess my income too?
  • benniebert
    benniebert Posts: 666 Forumite
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    Why would you cut doiwn the self employed hours if you are trying to grow the business? If you can get childcare for 24 hours then surely you could do the 16 you do now plus up to 8 on the new job Then if it goes well perhaps you could get more childcare

    I think that the poster is concerned that overall what would her household income be if she worked these extra hours AND continued to grow the business. Some calculations actually deter people from doing this. No point working longer if there isn't the right level of financial reward at the end of the week.
  • AutumnMoon
    AutumnMoon Posts: 40 Forumite
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    Oh, and also, how will it work in terms of tax? I don't pay tax on my earnings now, but I pay voluntary NI. Will my tax now come off through my paid employment?
  • AutumnMoon
    AutumnMoon Posts: 40 Forumite
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    Thanks blondebubbles. I'm just a but worried because isn't a minimum income floor coming in for SE businesses from April? Will I be penalised for not earning NMW? Is it up to HMRC to work my tax out once they know i'm SE & casually employed?
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