Can I offset my company set up against my husband earnings for housing benefit?

KayTanner

I have recently (01/01/15) become self employed. I have spent £2000 setting the business up and have had an income of £225 in 2014/2015. My husband's earnings are £24000. Will housing benefit offset my loss in set up against my husbands earnings?

bailey2004

No, they do not take a loss into account. Yoour income will be classed as nil.

KayTanner

Thank you
Will this be the same for tax credits?

densol_2

Tax credits are different - your loss can be set against your husbands income to reduce it. I would advise however to read fully the tax credit definition of being self employed as its different from HMRC. The work you do must be in expectation of payment - it cant be fanciful thoughts that you might earn some money at some point. Im on my phone and dont have the link but there is some good pages from HMRC ( tax credit side ) that explain this very well. Even
HMRC expect the business to be commercial and not a hobby. They are clamping down on low earning non commercial self employed claims for WTC.

Make sure your accounts are bullet proof and only claim for expenses that can properly be claimed. Ive made a loss this year ( a big one ) as ive also set up a business and bought a van etc but I'll definitely be in profit next year

Edited to add im assuming you are a " sole trader "not a limited company as thats a seperate legal entity and that would not apply

KayTanner

Yes, sole trader. Free lance bookkeeper. I have no idea how much I am likely to earn. I will give tax credits a call.
Thank you for the help

tomtontom

How have you spent £2000 as a freelance bookkeeper? :eek:

densol_2

http://www.hmrc.gov.uk/manuals/ccmmanual/CCM6000.htm

Here you go - some great info here

KayTanner

i've set up my whole work space from scratch... I am nearing the end of an accounting diploma and will be a fully qualified accountant by June, so the money needed to be spent. I could send you a spreadsheet of my outgoings if you like. I love a spreadsheet ��

Kim_kim

KayTanner wrote: »

i've set up my whole work space from scratch... I am nearing the end of an accounting diploma and will be a fully qualified accountant by June, so the money needed to be spent. I could send you a spreadsheet of my outgoings if you like. I love a spreadsheet ��

I'm quite shocked someone who sells their services as a book keeper is asking advice on an Internet forum about tax, profits & loss!
How are you going to do your clients work? Post on here & hope someone can advise....

densol_2

KayTanner wrote: »

i've set up my whole work space from scratch... I am nearing the end of an accounting diploma and will be a fully qualified accountant by June, so the money needed to be spent. I could send you a spreadsheet of my outgoings if you like. I love a spreadsheet ��

Expenses to " improve " knowledge with a new qualification are not a legitimate business expense. Only to keep up with knowledge - like continuing professional development are allowed.

NYM

Surely, capital expenditure is not a trading loss?