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Self employed
BudgetBrain
Posts: 16 Forumite
Hello everyone
I recently left work, I knew it was to happen so I got ahead with my rent, council tax etc I want to go self employed and have done a business plan to enable me to see that I can financially do it. What I want to know is am I allowed to claim tax credits if I am self employed? As I am ahead with all my outgoings my first few months will see very little income. I have read somewhere that if I work X number of hours i am to draw a salary representing the X hours and use that to submit for Tax Credit purposes. But in reality if there is no money I cannot receive a salary.
In short if I tell Tax Credits I am self employed but not drawing a salary do they give a grace period?
I am not subject to UC as I have 3 dependent children one of whom has a disability and receives the highest PIP award.
I have tried using benefit calculation sites but can't seem to get enough info for my particular circumstances.
I would appreciate any help and guidance I feel the benefit system is so complex I am not sure how to navigate around it.
Thank you
I recently left work, I knew it was to happen so I got ahead with my rent, council tax etc I want to go self employed and have done a business plan to enable me to see that I can financially do it. What I want to know is am I allowed to claim tax credits if I am self employed? As I am ahead with all my outgoings my first few months will see very little income. I have read somewhere that if I work X number of hours i am to draw a salary representing the X hours and use that to submit for Tax Credit purposes. But in reality if there is no money I cannot receive a salary.
In short if I tell Tax Credits I am self employed but not drawing a salary do they give a grace period?
I am not subject to UC as I have 3 dependent children one of whom has a disability and receives the highest PIP award.
I have tried using benefit calculation sites but can't seem to get enough info for my particular circumstances.
I would appreciate any help and guidance I feel the benefit system is so complex I am not sure how to navigate around it.
Thank you
0
Comments
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You cannot make a new claim for Tax Credits. You have to claim Universal Credit instead, the 3 child limit to new claims has been abolished.
https://www.entitledto.co.uk/help/Exemptions_to_2_child_limitInformation I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0 -
If you are thinking of becoming self employed you should ask your work coach about new enterprise allowance scheme, if accepted you receive an extra £65 a week for 13 weeks then £33 for next 13 weeks but you need to be on it before you start trading0
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You may wish to read this https://www.gov.uk/self-employment-and-universal-creditInformation I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0
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