Working and getting tax credit, but want to start selling on ebay

vb3d

I am working and getting tax credit.

I want to start selling on ebay without losing the tax credit for this year as my income might end up more than I reported when I started te claim, and I don't want be in a position where I have to pay back.

I am considering delaying the ebay business to the new financial year and inform the HM of expected higher income for that year so I don't lose my claim for this year, and if it didn't go well I still can claim it the year after.

Is there any better idea than this?

Thank you in advance

vb3d

blondebubbles wrote: »

You can earn an additional £5000 this year compared to last year without your claim being affected.

Sorry I don't understand, can you please explain a bit more?

Assuming I told the HM that I am expecting my salary to be X by the end of financial year, if it ends on X+5000 I don't need to pay back and my claim won't be affected?

Teahfc

Why not run both jobs along side each other ... Unless you have some amazing product or service to sell on e bay you may find yourself doing loads of hours for little reward. Running alongside each other gives you a safety net.

vb3d

blondebubbles wrote: »

It would be much easier if you could give specific information.

What was your 2014/15 income and what have you estimated for 2015/16?

By tax credit I meant Child tax credit, I have 2 children
My last year earning was 26750, estimated this year to be ~28250, I can see already that it could end up a bit more.
So I don't want to risk and make my income higher so I don't get into troubles.

vb3d

Teahfc wrote: »

Why not run both jobs along side each other ... Unless you have some amazing product or service to sell on e bay you may find yourself doing loads of hours for little reward. Running alongside each other gives you a safety net.

I just don't want to end the year making money more than I told them, I don't want to look like lying or cheating

zagfles

vb3d wrote: »

Sorry I don't understand, can you please explain a bit more?

Assuming I told the HM that I am expecting my salary to be X by the end of financial year, if it ends on X+5000 I don't need to pay back and my claim won't be affected?

No!! The £5000 disregard applies to the difference between last tax year and this, not between your estimate for this year and actual for this year. Otherwise everyone would just estimate £5000 below what they expect!!

zagfles

vb3d wrote: »

I just don't want to end the year making money more than I told them, I don't want to look like lying or cheating

Don't worry about that - just give an honest estimate and bear in mind that if you do end up earning more you might need to pay some tax credits back, so set some aside if your income is more than expected.

You can't end up with more tax credits overall by giving an incorrect estimate.

vb3d

zagfles wrote: »

No!! The £5000 disregard applies to the difference between last tax year and this, not between your estimate for this year and actual for this year. Otherwise everyone would just estimate £5000 below what they expect!!

Still not clear!
Last year I got 26750, so If I get 31750 this year this won't affect my claim for this year?

vb3d

blondebubbles wrote: »

Exactly. It would start impacting on your claim from next April.

You also don't need to wait until the end of the year to change your estimate for this year. You can call at anytime to do this.

But this sounds wrong
If someone on certain wage where he gets tax credit based on the same wage for the last year, and in the middle of the year he gets new job or start selling on ebay where he will end up £5000 more by the end of this year, he won't be paying back the tax credit?

That doesn't sound right to me, do you have any sources?

pebbles88

As said earlier: it'd be more possible for people to help you if you gave more details.

It'd be a lot less stress on you to just declare your earnings & be truthful with hmrc

vb3d

blondebubbles wrote: »

Just because you think it doesn't sound right doesn't mean it's wrong. Why would I take the time to give you wrong advice?

There is plenty of information online about tax credits.

The disregards are explained in detail here - http://www.revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/understanding-the-disregard/

Apologies, I didn't mean to say that you are not telling the truth, I was just expressing my wondering.
Thanks for the link.
So if I carry on start selling on ebay, trying not to exceed 31750, I won't be asked to pay back what I got on this year?

Another question if you don't mind, is the tax credit reward for this year based on the my last year's income or what I estimated for this year?