Registering as self-employed - 30 hours childcare - I'm confused

Bossworld

My partner was made redundant in August 2020, I am employed on a normal PAYE basis myself.

She is looking to turn her writing into a career, and has had a couple of small commissions so far this year (approx £800).  Our youngest child is due to start school nursery in September (turning 4 in December).  I want him to have the 30 hours childcare provision; as it's a school-based nursery, there is no option to top-up or pay for the additional 15 hours provision.  We've been fully paying for his private nursery up until now, he would be eligible for the 15 hours provision but we've not sent him in since he turned 3 due to the schools being closed.

If anyone can help clarify some bits I'd appreciate it, my head is going around in circles from reading the gov.uk websites.

1) She will have earned approx £4,000 this year from her job prior to redundancy, so is below the PAYE threshold but will have paid a small amount of NICs.  My understanding is that she still has a £1000 allowance before any form of self-assessment is required (probably not going to go above £1000 before April 6 2021).

2) Again, just my understanding, but you can voluntarily register for self-assessment even if you've not hit that £1000 mark yet.  Would it be best to wait until 6 April 2021 (and therefore into the 21/22 tax year) before registering?

3) The big one - what is the impact to 30 hours free child care?  I know the earnings limit doesn't apply within the first 12 months of self-employment, but is that 12 months from the point you register for self-assessment, or 12 months from when you apply for 30 hours free child care?

4) She was encouraged to apply for ESA for the periods in which she was shielding (as an clinically extremely vulnerable person) but this has rumbled on for months, with the DWP claiming not have received copies of the shielding letters, so nothing has been paid.  Presumably if this gets resolved, we'll need to write to them and advise that she is no longer claiming as she's now self-employed?


Thank you in advance for any help or guidance.

Marcon

Bossworld said:

My partner was made redundant in August 2020, I am employed on a normal PAYE basis myself.

She is looking to turn her writing into a career, and has had a couple of small commissions so far this year (approx £800).  Our youngest child is due to start school nursery in September (turning 4 in December).  I want him to have the 30 hours childcare provision; as it's a school-based nursery, there is no option to top-up or pay for the additional 15 hours provision.  We've been fully paying for his private nursery up until now, he would be eligible for the 15 hours provision but we've not sent him in since he turned 3 due to the schools being closed.

If anyone can help clarify some bits I'd appreciate it, my head is going around in circles from reading the gov.uk websites.

1) She will have earned approx £4,000 this year from her job prior to redundancy, so is below the PAYE threshold but will have paid a small amount of NICs.  My understanding is that she still has a £1000 allowance before any form of self-assessment is required (probably not going to go above £1000 before April 6 2021).

2) Again, just my understanding, but you can voluntarily register for self-assessment even if you've not hit that £1000 mark yet.  Would it be best to wait until 6 April 2021 (and therefore into the 21/22 tax year) before registering?

3) The big one - what is the impact to 30 hours free child care?  I know the earnings limit doesn't apply within the first 12 months of self-employment, but is that 12 months from the point you register for self-assessment, or 12 months from when you apply for 30 hours free child care?

4) She was encouraged to apply for ESA for the periods in which she was shielding (as an clinically extremely vulnerable person) but this has rumbled on for months, with the DWP claiming not have received copies of the shielding letters, so nothing has been paid.  Presumably if this gets resolved, we'll need to write to them and advise that she is no longer claiming as she's now self-employed?


Thank you in advance for any help or guidance.

I'm not sure this is primarily an employment question - possibly more one for benefit experts? If so, https://www.turn2us.org.uk is likely to be a good starting point.

Bossworld

Marcon said:

Bossworld said:

My partner was made redundant in August 2020, I am employed on a normal PAYE basis myself.

She is looking to turn her writing into a career, and has had a couple of small commissions so far this year (approx £800).  Our youngest child is due to start school nursery in September (turning 4 in December).  I want him to have the 30 hours childcare provision; as it's a school-based nursery, there is no option to top-up or pay for the additional 15 hours provision.  We've been fully paying for his private nursery up until now, he would be eligible for the 15 hours provision but we've not sent him in since he turned 3 due to the schools being closed.

If anyone can help clarify some bits I'd appreciate it, my head is going around in circles from reading the gov.uk websites.

1) She will have earned approx £4,000 this year from her job prior to redundancy, so is below the PAYE threshold but will have paid a small amount of NICs.  My understanding is that she still has a £1000 allowance before any form of self-assessment is required (probably not going to go above £1000 before April 6 2021).

2) Again, just my understanding, but you can voluntarily register for self-assessment even if you've not hit that £1000 mark yet.  Would it be best to wait until 6 April 2021 (and therefore into the 21/22 tax year) before registering?

3) The big one - what is the impact to 30 hours free child care?  I know the earnings limit doesn't apply within the first 12 months of self-employment, but is that 12 months from the point you register for self-assessment, or 12 months from when you apply for 30 hours free child care?

4) She was encouraged to apply for ESA for the periods in which she was shielding (as an clinically extremely vulnerable person) but this has rumbled on for months, with the DWP claiming not have received copies of the shielding letters, so nothing has been paid.  Presumably if this gets resolved, we'll need to write to them and advise that she is no longer claiming as she's now self-employed?


Thank you in advance for any help or guidance.

I'm not sure this is primarily an employment question - possibly more one for benefit experts? If so, https://www.turn2us.org.uk is likely to be a good starting point.

We tried CAB but they weren't particularly knowledgeable unfortunately.
1) I've ticked off by further research online so that's fine
4) On paper, ESA could be grounds for 30 hours childcare regardless, but once the vaccine rollout goes ahead, I think ESA will automatically be withdrawn.

So that leaves 2 and 3, if anyone with knowledge of registering for self-assessment before it's actually required has any tips, that'd be handy.
3 is mentioned on here - https://www.gov.uk/30-hours-free-childcare as
"If you’re self-employed and do not expect to make enough profit in the next 3 months, you can use an average of how much you expect to make over the current tax year.

This earnings limit does not apply if you’re self-employed and started your business less than 12 months ago."