Working two jobs, tax credits?

[ScottG13]

Hello again all. Once i have done my course and some jobs for friends + family (already booked), I am looking at starting out tiling on weekends as and when I can.

I am wondering where i stand regarding tax credits. I know that tax credits are worked out on your earnings the year previous. On the hmrc website it states:
'If you've just become self-employed

If you've only just started working for yourself and had no income from self-employment in the last tax year, leave the ‘income from self-employment’ box blank.'

Yet you see ad's on the tv telling you to notify them of any changes straight away!

If anyone could shed some light on the subject and/or has been in the same situation, some advice would be very much appreciated

thanks

[Dave]

Grumpy grouter will be your man for this... Hi is an accountant and part time tiler.

[kilty55]

hi mate,they will ask you what you project your earnings to be for your first year,when i went self employed at first i had worked 3 months of the year in a paid job then the remaining 9 months were to be self employed as a tiler,i estimeted what i thought i may earn,,however take into account what its gonna cost to set yourself up in business and adjust your earnings accordingly.at the end of that year when you do your self assesment they will want your actual figures and adjust there records accordingly,they will also take into account what you earned in your old job .

[kilty55]

hope this helps cos its scrambled me

[whitebeam]

Could be worth having a chat with an accountant

[albyshellshear]

I found if you go to the tax office and sit down with an adviser they are extremely helpfull, and you get a good accountants advice free of charge, the same goes at the end of your trading year, filling in tax returns, and everything accountant related they will be a lot of help.The best thing is when you sit and talk to them they are just people doing a job, i used to pay a fortune to accountants then found they will do the same job for nothing, people can be awkward on a phone even nasty in a letter but face to face they are always nice..........Alby

[mikethetile]

as kilty said

you need to give an estimate of what you expect to earn and they will adjust after your return has gone in

if they have overpaid they will take money back

if they have underpaid they will give you a cheque for the balance

its all mystic meg and crystal balls when you start out

every business needs a business plan and on this plan you project your planned earnings for the coming year

so for example

you plan to work 5 days a week @ £120 a day thats £600 a week on your plan

you will have business costs of about £40 a day

so you tell the tax office you intend to earn £80 a day or £400 a week

less holidays

reality does eventually catch up with your projections

good luck in starting out

aim high and dont undervalue yourself