Self Employed Ctaft Maker - WTC Check

chocolatebar2009

Sorry if Im not in correct place, need some help please relating to Self Employed - Craft Maker working tax credit check, many thanks

Darksparkle

What help do you need? You’ll need to give more information.

chocolatebar2009

I work approx 50 hrs week, sole trader self employed craft maker, sell at shows and exhibitiions etc dont earn a lot and recieved WTC, I have now recieved letter etc for check and need to send info and details but covers only certain months. It is a busines in that I make to sell and do self assesment with Tax office, it seems very daunting everything they want info wise and need to be sent by 19 nov, any help please

sheramber

Do you a weekly or monthly record of your income and expenses and how many hours you worked?

soolin

Do you actually make a living at your craft work ? I'll leave it all to the experts here to advise but there are requirements now in some areas to prove that this is a proper business with a real profit .

https://www.gov.uk/working-tax-credit/eligibility

Some self-employed people are not eligible for Working Tax Credit. To qualify, your self-employed work must aim to make a profit. It must also be commercial, regular and organised.

This means you may not qualify if you don’t:

make a profit or have clear plans to make one
work regularly
keep business records, such as receipts and invoices
follow any regulations that apply to your work, for example having the right licence or insurance
If the average hourly profit from your self-employed work is less than the National Minimum Wage, the Tax Credit Office may ask you to provide:

business records
your business plan - find out how to write a business plan
details of the day-to-day running of your business
evidence that you’ve promoted your business - such as advertisements or flyers

chocolatebar2009

Thanks for input,
I am a sole trader, crafter, make and sell through shows and exhibiotns i do each year, I have made a small profit over the last year or so, I send the tax people my self employed returns, income and exp, keep my records, dont use business bank as it costs to much, i have wholesalers traders i buy from etc, keep all mileage details and have a scheduled time each work I work, sometimes more and sometimes less, i dont need a registered licence, as it is miniatures and craft business, dont sell from home, pay self employed National Insurance

Darksparkle

How many hours have you declared you are working each week?

What was your profit last year and estimate for this year?

seashore22

Is this a viable business that you will eventually be able to make a decent living out of?

Do you sell online?

Are you selling at fairs on a very regular basis? At least once a week?

I ran a small craft business for a few years and no way would it have made me any real money, despite all the hours I put in. Really it was little more than a very time consuming hobby. I did sell at local fairs and online, but unless you are very business minded and good at promoting yourself via social media, it will be hard for this to be a good substitute for a "proper" paid job.

No way would I have been able to claim WTC and in the end decided the "business" was a luxury that I couldn't afford.

fishybusiness

I have made a small profit over the last year or so

Perhaps the most pertinent questions is regarding the above......is your profit calculated before or after payment of wages?