am i self employed?

julianhugh

I recently sold my business as I am moving from Edinburgh to oxford. I then spent six months extending my house in order to sell for a profit. Does this count as self employed for the purposes of tax credits? If so I have just been self employed and made a loss over the period to april 5th 2016, because the house sale wont go through till September....?

Tiddlywinks

You need to employ an accountant - don't rely on opinion here which will only be based on what you offer as relevant information.

Your status and that of the sale of your property have tax payment as well as tax credit implications so you need to get professional advice.

NYM

I think anyone wanting to sell their properties would hope for a profit. It doesn't make them self-employed.

julianhugh

I guess my question really is that if I had bought the property, extended it then sold it, I would be a self employed property developer, does extending your own home full time count as self employment... The profit has certainly justified the work...

fed_up_and_stressed

julianhugh wrote: »

I guess my question really is that if I had bought the property, extended it then sold it, I would be a self employed property developer, does extending your own home full time count as self employment... The profit has certainly justified the work...

Out of interest - If the profit has justified the work why do you need taxpayer support i.e tax credits ?

Hellsbells77

I agree that advice from an accountant, as to the legalities of whether you should be classing yourself as self employed or not (if you are then you have 3 months to register yourself and will need to be paying NI), would be beneficial.

There are also provisions in place as to what is classed as an investment in terms of making a profit from a property or whether it is classed as your residence that you are selling on, as you could also be liable for capital gains tax.

[Deleted User]

https://www.gov.uk/working-for-yourself/what-counts-as-self-employed

Darksparkle

julianhugh wrote: »

I guess my question really is that if I had bought the property, extended it then sold it, I would be a self employed property developer, does extending your own home full time count as self employment... The profit has certainly justified the work...

But the profit in selling your own home wouldn't be taxable income.

tomtom256

Surely the business you sold means you are no longer self-employed or am I missing something?

Was that business property development or you just trying to scam tax credits?

Darksparkle

Have you been claiming WTC since you sold your business?

mad_spaniel

Quote "But the profit in selling your own home wouldn't be taxable income"

I think that if you flip a property (buy and sell for profit) then the gain in value when you sell, less costs,and a yearly allowance, is subject to capital gains tax rules. You may need to check this.