Advise on being an employee and self employed when claiming tax credits

jennifer201386

Hello
Can I start by thanking you for reading my post and offering your help and advise.
I currently work 24 hours a week as an employed care assistant

I want to work 8 or 9 hours as an employed care assistant and work 8 hours as a self employed cleaner
So that would be a total of approximately 17 hours a week for both jobs
I would be earning roughly £700 per month

I am a single mother to my daughter and I currently claim working tax and child tax credits
I have some questions which I was hoping someone could help me answer

1. I under how the personal tax allowance works but I'm finding it confusing when it comes to having two jobs and one being self employed. Obviously earning £700 I'd still be within my tax allowance but I heard I would still have to pay 20% on second job, would I get it back? Would I put the 20% away each month and at end of year sort it all out?
Would I pay it and get a repaid back?
2. How would having two jobs work for my tax credits? would my 17 hours a week still meet the minimum of 16 hours to qualify for tax credits even though it's spread over two jobs
Or would it need to be just one job
3. Obviously as a self employed domestic cleaner I would need to travel to different hours to do the cleans, would the traveling time be included as part of my working hours ? So for example if I am doing 4 hours cleaning and an hour traveling time, would I be declaring 5 hours work in total? For tax credit purposes as well
4. Can my personal tax allowance be spread over two jobs to avoid me paying the 20% in one go? Could I tell the HMRC my projected earnings in both jobs and they divide the tax code accordingly or does that not apply for self employed ?
5. Tax credits are based on the previous years earnings, what would I do of my current years earning were a lot less or more than last year?

Thanks again!

Darksparkle

Tax

Your personal allowance is for your total taxable income. So if the total income is less than £11,000 then you'll pay no tax.

You'll get a tax code of 1100L for your employment.

You'll need to register as self employed with HMRC and complete a tax return each year.

NIC

This is separated for your employment and self employment. So depends what you'll earn in each.

However your employer will deal with that for the employed job and tax return for self employment.

Tax Credits

Yes travel time between cleaning job is included as work. However if working more than 16hrs but less then 30hrs it won't matter.

It doesn't matter how many jobs you do as long as the total hours are at least 16.

You estimate to tax credits your income for this year and they will recalculate.

jennifer201386

Thankyou for your reply
What do you mean when you said travel time is included as working hours by it won't matter if I do above 16 but below 30?

I also forgot to ask where I stand on cleaning for some family members they will pay me for my service
By was worried incase this isn't counted as proper work
Thanks

Darksparkle

To get WTC you need to work 16hrs or more.

If you work 20hrs or 25hrs you don't get any extra tax credits. However you do if you work 30hrs or more.

As long as you treat them to same as any other customer then it would be fine. You'll need to keep accurate records of the work carried out, income and expenses etc.

Jamiesmum

Travel time won't count as you're not being paid for it.

Darksparkle

Jamiesmum wrote: »

Travel time won't count as you're not being paid for it.

Sorry but you are wrong.