WTC and CTC self employed any help MUCH appriciated!

nicky1306

Evening all!!
I am currently considering going self employed as a nail technican I have compleated my training and there is a salon near me to let, BUT my childcare bill alone would be £900.00!:eek: :eek: :eek: Plus rent, materials etc.
I have called Tax credits and they said I need to estimate my earnings??? eekk?? in order for them to work out what child tax credits I am entitled to and how much of my child care costs I will get back, when speaking to other nail techs they seem to think that after rent, childcare,materials, etc I won't actually be making enough to pay myself a wage, which means as I'll most likely be working 30+hours p/w I may be entitled to wtc, is this correct? It just seems strange to me that out of choice I have started a business and not made any money out of it, yet becasue I am working the goverment will pay me wtc???

I'm very confused to say the least, can anyone give me ANY advice on WTC and CTC and childcare costs for the self employed??

Many thanks, sorry for the essay!:rotfl:

Conor_3

You should have this figure from your business plan which you have done, haven't you?

You're asked to estimate it so work out what you reckon you'll make a week, take off the costs involved to get your profit (THAT DOES NOT INCLUDE CHILDCARE OR YOUR WAGES) and multiply that figure by 52. 6 months down the line if it looks dramatically different, ring em up and tell them the new estimate and they'll adjust the payments accordingly.

You get the same amount as someone on the same income on PAYE. As an aside, it's perfectly reasonable to put a zero or loss in the first year of trading.