Anyone that is on benefits and runs their own business?

[ilovebags]

Hi everyone
I have really started to get serious about my handbag and personalised gifts, so want to register with the tax office

but we are currently on benefits as hubby as he is unable to work due to serious back problems, i would love to go back to work but as his carer and as he is unable to do lots on his own, i cant

what i want to know if anyone is on benefits and has gone to be self employed how does it work as unsure about the working tax credits etc and how many hours you work :S

If you dont want to post on here you are more than welcome to pm me :)

Many thanks for any help

Sarah

[Caroleecrafts]

The fact that you are selling on Folksy and have already sold 11 items means you are self employed and should be registered with the tax office. This should be done within 3 months of starting the business otherwise you can be fined.

There is no leaway to what is a business and what is not, once you buy materials to make and sell a product you are a business. A hobby is where you make for fun and give as gifts etc to friends and family, which is how most of us started but as soon as you sell, however small, that is a business.

Re the benefits as said above you are already selling so really do not have a choice but to register, you would then have to talk to the IR to see whether it affects your benefits or not. I am not too sure about this side but sometimes you can still claim dependent on the amount of money you are earning, either way it is best to ring the IR and talk to someone who can help you.

Sorry if that is not what you wanted to hear.

[greannancrafts]

I agree with Caroline, it appears that you are already self employed but have not told Mr Taxman.

Speak to them, they are human and very helpful and will be able to claify any questions you have.

I am not 100% on the benefits system, but check with your providing department, I am sure you will find them helpful.

Jane

[Bath-Bomb.Com]

I agree with what's been said - if you are already selling, then you should have registered. Don't underestimate the IR ability to access public/online methods of selling - they do check places like Ebay, Etsy and Folksy and can look into your PayPal activity...

There are some benefits that won't be affected by your being self-employed - especially those related to disibilities...so it's well worth checking with the benefits office.

If you aren't making much (if any) profit, then things like Income Support are not likely to be affected...but your carers allowance (and also JSA) might be, as, if you are working for yourself (over a certain number of hours per week) you can't be available to care or available to look for work...

HTH

[Abij]

i agree with the others, the tax office don't distinguish between selling casually or seriously - as soon as you start selling something or having money come in in any way then you have to inform them as you are liable to pay tax on any income. And any income needs to be declared to the benefits office too.

Good luck with sorting it all out.

[0103media]

All the above is correct but you may not need to pay any tax and may not effect benifits as we all have what's called a "personal allowance"

You still MUST register and declare this. You should take advice on what happens if you earn over your personal allowance.

You can sadly be far better off earning less...

Maybe talk with biz link and IR of course for help and advice.

[Sue T]

My husband is disabled and I am his carer, I am registered as a business and sell on line occasionally and through party plan. Every year the dwp get in touch and want a copy of my books, I let them know what I have spent on the business and what I have sold, so far I haven't had to pay anything back to them or to the IR. you are allowed to earn so much a week before your carers allowance is affected, I think it is £80 odd a week but not sure of the actual amount, bit if you talk to them they are helpful, don't bury your head in the sand, it's amazing how many people out there are willing to tell on you, you are better doing it as soon as possible.
Hope this helps,
Sue

[funky_bunny]

I agree with what's been said - if you are already selling, then you should have registered. Don't underestimate the IR ability to access public/online methods of selling - they do check places like Ebay, Etsy and Folksy and can look into your PayPal activity...

There are some benefits that won't be affected by your being self-employed - especially those related to disibilities...so it's well worth checking with the benefits office.

If you aren't making much (if any) profit, then things like Income Support are not likely to be affected...but your carers allowance (and also JSA) might be, as, if you are working for yourself (over a certain number of hours per week) you can't be available to care or available to look for work...

HTH
Anyone on Income Support should declare any income, and any income over £5 per week is deducted from their Income Support.

[beads4breakfast]

Just to add onto the good advice everyone else as said if you live in a council property you can get help with a % of your rent and council tax depending on what you earn a week.
Also you can claim working tax credits too. I am fulltime self employed now all I am living on is my working tax credits that went up quite a bit when I quit my job, child benefit and child maintenance. I am awaiting the council to let me know how much they are helping me.

Pop along to your local Citizens advice burea mine was so helpful she had a programme on her laptop and she entered all the incomings and told me roughly what I would get in working tax credits and entered different amounts of 'earnings' in a week and it showed how much I am helped by council. The do take into account monies having to be paid back into the business i.e materials etc...

[Studio Nine]

The fact that you are selling on Folksy and have already sold 11 items means you are self employed and should be registered with the tax office. This should be done within 3 months of starting the business otherwise you can be fined.

This is no longer the case. You now have to register as soon as you start working for yourself, or risk getting fined.

However HMRC are a bit useless at keeping there website up to date, so it still cites 3 months in places, so you could in theory argue your case, but really not worth having to have that argument with them if you can help it!

[Caroleecrafts]

This is no longer the case. You now have to register as soon as you start working for yourself, or risk getting fined.

However HMRC are a bit useless at keeping there website up to date, so it still cites 3 months in places, so you could in theory argue your case, but really not worth having to have that argument with them if you can help it!

Spoke to a friend who works at the IR and within 3 months is fine, they are management level, just for the record. This thread is a bit old now.