Child Benefit, NI Credits & eBay Side Hustle – Advice Needed

rumouri

Dear all

I’m trying to make sure we’re doing things correctly with tax and benefits. My wife claims Child Benefit for NI credits (child under 12), and I’m a high-rate taxpayer so the High Income Child Benefit Charge applies to me. 

She’s recently started an eBay side hustle:

• Gross income: ~£12,000 this tax year
• Interest income: ~£1,000

She is planning to register as self-employed, we have few questions:

• Can she use the £1,000 trading allowance instead of detailed bookkeeping?
• Will this affect her NI credits from Child Benefit?
• With this income, can she qualify for 30 hours free childcare?
• Does she need a separate business bank account for this side hustle?

Any advice or experiences would be really appreciated!

Spoonie_Turtle

Your first question, yes she can use the £1,000 trading allowance if she's not already using it for any other trading, however if her expenses are over £1,000 in a tax year - e.g. postage, eBay fees, buying stock - then financially it would be more beneficial to deduct actual expenses.

(Other than that I can't help, sorry.)

Murphybear

Spoonie_Turtle said:

Your first question, yes she can use the £1,000 trading allowance if she's not already using it for any other trading, however if her expenses are over £1,000 in a tax year - e.g. postage, eBay fees, buying stock - then financially it would be more beneficial to deduct actual expenses.

(Other than that I can't help, sorry.)

There’s  a section on eBay, car boot sales and similar on here.  There are some very experienced and knowledgeable people.

Grumpy_chap

rumouri said:

Dear all

I’m trying to make sure we’re doing things correctly with tax and benefits. My wife claims Child Benefit for NI credits (child under 12), and I’m a high-rate taxpayer so the High Income Child Benefit Charge applies to me. 

She’s recently started an eBay side hustle:

• Gross income: ~£12,000 this tax year
• Interest income: ~£1,000

She is planning to register as self-employed, we have few questions:

• Can she use the £1,000 trading allowance instead of detailed bookkeeping?
• Will this affect her NI credits from Child Benefit?
• With this income, can she qualify for 30 hours free childcare?
• Does she need a separate business bank account for this side hustle?

Any advice or experiences would be really appreciated!

As Spoonie said for the trading allowance.

A separate bank account is best practice and it makes things easier for accounting purposes.   It is against the T's&C's of most personal accounts to use for business purposes.

I can't assist on the other queries, sorry.
Those queries might be more suited to the tax cutting board?  This board is more focused on means-tested or medical-related benefits.

sheramber

It won’t affect child benefit credits.

for child care see link

https://www.gov.uk/free-childcare-if-working/check-youre-eligible