Self Employment - Tax credit question

[Psychoduck]

Having been unemployed for 4 years, racking up some debt, and being depressed as buggery about it all. I've decided to give self employment a go through a grant from Princes Trust and Business Link. All is going well, and I'm in the final set up stages, just waiting to have the business plans approved.

 

Before I do 100% commit though, I need to know how Working Tax Credit and Child Tax credit are affected, does anyone know?

 

Right now I get £61 p/w for Child Tax Credit, whilst claiming ESA.

 

Obviously, I get nothing for Working Tax, as I don't work.

 

My initial business will only run for 15 hours per week, as I start out. Child Tax, I believe, will be unaffected here... as should be the same with any other benefits, although any earnings would be deducted from my ESA payments (any more accurate info on that would be appreciated)

 

When I move on to doing more days in a month or two, I aim to work 25 hours a week (eventually going to 40+) this puts me above the 24 hour mark for Working Tax Credit. Would I be entitled to it? and how do I prove my hours, what I earn, etc in order to claim it ASAP?

 

Thanks for any help, we've been at a course with the Princes Trust all week regarding business plans, and no one has been able to help about this subject, not even the HMRC rep who was in today.

[estellyn]

If you have a disability that can affect you finding work, you only need to work 16 hours a week to claim tax credits. As you already claim CTC you would just need to call them and notify your change of circs.

 

http://www.hmrc.gov.uk/taxcredits/start/who-qualifies/workingtaxcredit/disability.htm

 

However many self employed hours you work, you don't have to prove it, just state the hours you work. You do have to register as self employed.

 

While doing permitted work, earnings are not deducted from ESA or HB or CTB

[osdset]

What was the Princes trust course like? Worth doing?

[Psychoduck]

I did the business enterprise course, it's a 4 day course in a group class, tells you pretty much everything you need to do. Then you go home and over the next few months you have to put together a business plan... you can still call in to them for help... when your business plan is done, they look and approve it, then they send you to a panel who have to approve it again and then you get your money, and mentor for 2 years.

 

Maximum age is 30 years.

 

I found it useful, and the 8 people I've been doing it with have all have found it to be very positive.

 

 

 

Estellyn: Thanks for the extra info!