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View Full Version : Worried over self employed registering.. help please



CarLisaCrafts
18-09-2009, 12:49 PM
Hello..

I am a little unsure of what to do now...

I am technically unemployed right now. My hubby is in retail and doesnt earn huge amounts so we are on benefits. What i make i dont really make a huge amount of profit on just enough to cover costs etc. I really enjoy it and have had a web site which does a little bit but not a lot. I have a fan page ion facebook which also does a little here and there. Last year I did my 1st craft fayre at a local school which was good (well for me). I havent registered as self employed because i am so worried about doing it. We only just scrape by financially as it is and having recently had our 3rd child things are a little tough just now. Should I register?? i really dont want to stop but at the same time i need to live

Does anyone have any experience with registering as self employed who is currently on benefits?? Does it effect them?? Am so confused now i dont know what to do for the best :(

help

Caron x

Lucy's Designs
18-09-2009, 12:59 PM
I'm not on any benefits so I'm not sure of the details regarding that, but my advice would be to ring the Inland Revenue asap and speak to them about your situation. I spoke to them yesterday and if you don't register within three months of your 'business' starting you can be fined 100, which is the last thing anyone needs right now.

A wild guess would be that you're benefits would be fine as you'll be making so little at craft fairs (not to sound mean there but none of us are making millions lol) that you probably wouldn't pay tax on your earnings anyway, but I really think the best thing is to check and be up front with them right from day one, much better than being found out months down the line and being fined

CarLisaCrafts
18-09-2009, 01:06 PM
I'm not on any benefits so I'm not sure of the details regarding that, but my advice would be to ring the Inland Revenue asap and speak to them about your situation. I spoke to them yesterday and if you don't register within three months of your 'business' starting you can be fined 100, which is the last thing anyone needs right now.

A wild guess would be that you're benefits would be fine as you'll be making so little at craft fairs (not to sound mean there but none of us are making millions lol) that you probably wouldn't pay tax on your earnings anyway, but I really think the best thing is to check and be up front with them right from day one, much better than being found out months down the line and being fined

Thank you. I will have to give it up I think because i dont have 100 :( wil have a look at their web site now but if they will dock our benefits then its a no go for me. My family comes first xx

bodrighy
18-09-2009, 01:16 PM
I registerd yesterday as online selling is monitored so they can find out and then the fine will come in. If you are claiming bebfits you need to tell tehm but you can still get tax credits and benefit if self employed apparently. My wife ialso in retail as you put it. I was unemployed but started selling so felt I had to. They offered to put me on a 1.2 day course at the local taxk office to explain it all. When I rang them they just wanted to know name address, what name I traded under and when I started earning. I also was worried but they are pretty good and once on it isn't a problem. Insurance is 2.50 a week payments though I was told that if I earn less than a certain amount, which I do, this can be scrapped. Need to look into it.
My advice would be to go for it as every little earned is a help and it also helps keep your sanity.

Pete

CarLisaCrafts
18-09-2009, 01:21 PM
Thank you :)
I am just reading about small earning certificate of 5000 or so between april 2009 and april 2010 and there is no way i do that. I make mine based on little profit because it 'keeps me sane' it reaches out..
Did you ring?? or did you do it on line??

bodrighy
18-09-2009, 01:24 PM
I read on line gave up and rang and apologised for being stupid.:D Sge filled the form out as I gave her the info. It's either an 0845 or an 0800 number can't remember which, it's under contacts on the site. They really are pretty nice....I suspect it's if you try and pull a flanker they get stroppy. And yes you need to be earnign a fair wack (by our standards) before you start paying tax or losing anything. It also gives you a boost as already I feel I am 'crafting for a purpose' Oh yes, you can still get an employed job at the same time apparebtl no problem

Pete

jencel
18-09-2009, 01:31 PM
Can you get an appointment with an independent benefits advisor, at a CAB?

I used to work in benefits, (many years ago, so things will have changed) It was Housing Benefits I worked in, which is means tested, and it could get quite complicated with self employed people, because their benefits were affected, but the person would be earnung different amounts each week.

It's different to Tax, and you might be best to get proper advice on how your benefits may be affected before you decide what to do.

nattynetty
18-09-2009, 02:24 PM
I agree that it's worth talking to someone (possibly CAB) to find out the ins and outs of being self employed and benefits. I may be COMPLETELY wrong having never claimed working or child tax credits but wouldn't these increase if you were self-employed possibly making up for any other benefit you may lose?

CarLisaCrafts
20-09-2009, 01:29 PM
Thank you all. I have made an appointment with CAB for next week and talked to a friend who works in benefits and looks like it will all be ok. Sooooo as soon as I have talked to CAB and digested what they say I hope it will all be sorted. I was in such a panic because i really didn't realise i was doing anything wrong..

Looking forward to sorting it all out and being 'official' :)

Thanks for all your help

Hugs Caron x

bodrighy
20-09-2009, 03:17 PM
Thank you all. I have made an appointment with CAB for next week and talked to a friend who works in benefits and looks like it will all be ok. Sooooo as soon as I have talked to CAB and digested what they say I hope it will all be sorted. I was in such a panic because i really didn't realise i was doing anything wrong..

Looking forward to sorting it all out and being 'official' :)

Thanks for all your help

Hugs Caron x

I know the feeling. I had been 'trading' for a while and then founf out that if i went on for three months I was likely to be fined. Scary.

Pete

AnnieAnna
21-09-2009, 10:35 AM
Whisper......the lady from the register yourself tax people told me......it's like good cop, bad cop. So the registery ones are the good cops and are really helpful and welcome you in with free packs and tea and biscuits and they don't snitch to the 'bad cops' - the tax men who take your money - about anything.
This is my personal feeling but whether you take the daffy air head approach and come clean about being a bit late about registering because you didn't realise......or do a bit of maths and say you started your business 3 months before you register.......you won't be fined. The 'good cops' just want to get you in the system incase you become a millionaire. The 'bad cops' have much more important things to do than chase teeny weeny crafters who have made 5 profit.

The thing that might get you is having to pay National Insurance, like Bodrighy says. It can make you cry - having to pay out half of your 5 profit ....but it is to pay for your benefits after all.......
What it does is give you an incentive not to give up so you can make more than 2.50 a week.

I'd look at it this way: it's really hard to make a profit so you'll probably break even, so no change, but you will have been busy and will have made new friends.
If you make a profit it will probably be taken off your benefits pound for pound so again no change to how much money in your purse but you will have been busy, got new friends, and a sense of achievement.
If you earn loads, you won't need benefits, and you will be a most brilliant person...and have new friends etc.

Just call back if you earn make more than 5000 profit in a year. They change the goal posts and you might die of shock! I nearly did when after taking the tax I had carefully put aside for the past year they asked for higher NI contributions and the tax for the next year which hadn't happened yet!!!! That's when you need the new friends to help calm you down. It took me two weeks to stop feeling outraged :nopity:
All the best. Making stuff is fun. Go for it.
AnnieAnna