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First child; sole trader in a new business; confused about entitlements!

(9 Posts)
CheeseStrawCraving Sun 14-Jul-13 21:46:09

My DH and I recently started a new business (Dec 2012)... It is in my name totally as a sole trader, but I do not know how much I/we will earn per year (and also whether it would be better to take v little myself and pay DH a decent salary or vice versa or just to split evenly). With this in mind (and a not-too-helpful accountant thus far...) can anybody advise me what I/we are entitled to re maternity pay, tax credits, benefits etc? Ashamed to say that I know nothing and frankly even looking into it has confused me blush

Any help would be greatly appreciated! Thanks thanks

2Retts Mon 15-Jul-13 00:00:31

Is it a Ltd company CheeseStrawCraving or just you as a self employed individual runnning the company?
Do you and your DH work only for the company or are either of you salaried elsewhere also?

Don't feel ashamed....it is a confusing minefield, but certainly one you are able to negotiate.

CheeseStrawCraving Mon 15-Jul-13 11:00:21

Thanks 2retts, I am a sole trader but pay staff on a casual part-time basis (waiting staff/chefs). DH is a chef and so does occasional jobs for other caterers (tends to be last minute jobs) but yes we both pretty much work full time on the business - it's our main source of income certainly.

CheeseStrawCraving Mon 15-Jul-13 21:37:01

Bump

2Retts Mon 15-Jul-13 23:35:11

Sorry for taking so long to come back to you CheeseStraw...

As you're not a Ltd company, all the income is considered your 'wages'. This is calculated after all your allowable outgoings.

As it's the main source of income for you both collectively, it makes no real difference how much you 'pay' yourselves (provided you live together), for the sake of benefits etc.

I think your best bet is to apply for tax credits (working and child). The amount you can claim depends upon what your collective income is and how many hours you work.

I think the thing to bear in mind is that all your marketing, menu development, research, sales time is considered 'work'. I say this because it is highly likely that, although you may not spend over thirty hours a week each on carrying out the main function of service delivery, it is highly likely that you both spend over thirty hours a week doing work that you anticipate will lead to income. As such, any claim you make should reflect ALL the hours you put into building your business.

As far as all the other employment benefits are concerned (maternity/paternity, statutory sick pay etc), that's down to the company...i.e. you! It is reclaimable through HMRC but I would take one step at a time and make the tax credits claim a priority.

If you need a hand, message me and I'll be happy to help.

ChablisLover Tue 16-Jul-13 20:39:26

If you are self employed e.g. Sole trader not a company you can claim maternity allowance from job centre.

CheeseStrawCraving Tue 16-Jul-13 23:38:26

Great, thanks 2Retts this makes much more sense. I think I need to get my figures bang up to date and then work out where I'm up to re allowances. Am I right in thinking I can't claim tax credits until baby is born (due in 6 weeks ish)?

CheeseStrawCraving Tue 16-Jul-13 23:39:33

Thanks chablis have just completed the form to stick in the post tomorrow!

ChablisLover Wed 17-Jul-13 18:37:49

You can't claim tax credits until the baby is born but you should have all your figures up to date.

Glad you got the maternity allowance forms sorted.

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