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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

My husband earns £7800 p.a.

28 replies

twosmallones · 12/02/2015 19:57

He works full-time & is a self-employed sole trader. I work part-time and earn double what he does (still not a lot...) We stay afloat by claiming Child Tax Credits.
The hurtful thing is that he told me his profit would be close to £15000 and I found out that it is £7800. I feel that he purposefully didn't tell me as not to worry me but now I am tearing my hair out as we had planned to move home and I don't think we'll be able to afford it.
Am I being unreasonable for wanting him to find a different or an additional job?

OP posts:
WineIsMyMainVice · 12/02/2015 19:59

How long has he been trading? It can take awhile to build a business up. Is he doing everything he can to do that and putting the effort in etc?

bloodygorgeous · 12/02/2015 19:59

Oh dear sorry. But when you said 'told me his profit would be close to £15k' he didn't actually say it would be or was £15k. Have you talked to him about why that is? How long didn't he tell you for? Did he keep it a secret?

SnowWhiteAteTheApple · 12/02/2015 20:01

Has he been self employed long? Is it just a bad patch or always this bad?

If he works full time whilst you do part time then a second job is not a bad idea for yourself but him taking on one as well as full time work is a bit too much to ask.

Original poster
twosmallones · 12/02/2015 20:02

This is his 3rd year and his profit dropped this past year from last year (£12000 last year). I feel like he has been secretive as he had to estimate it last October and then call HMRC to update for Tax Credit purposes in January and failed to tell me then. We are in the process of applying for mortgages and he told the broker that it would be at least £12000.

OP posts:
Original poster
twosmallones · 12/02/2015 20:05

He works full-time but a lot of it is not necessarily paid hours, if that makes sense? My thoughts are could he do say 2 days a week doing something else (where he is an employee rather than self employed) and 3 days doing his current job. But I don't know whether that is too much to ask. But equally how can we survive on his income as it is?

OP posts:
Iheartu · 12/02/2015 20:10

I dont understand why you think strangers on the internet know better than the man you are married to :/

Original poster
twosmallones · 12/02/2015 20:15

Iheartu - I thought the point of Aibu was to ask people's opinions before taking action on an issue in real life?

OP posts:
ilovechristmas1 · 12/02/2015 20:19

he probably exaggerated as he didnt want to worry you

he probably feel a failure (he is not) it's llprobably pride as well,so many men still find it hard that the women earns more

sit down and talk see what you can both figure out

AntiHop · 12/02/2015 20:29

It's taken quite a few years for my dp to build up a decent annual income self employed. Did it reduce by much? If he worked part time would he still have enough time for his self employed job?

ManOfSpiel · 12/02/2015 20:32

I'm being nit picky but if he's self employed and earnt £12k last year then he's not likely to be on £7.8k pa. I realise this doesn't look good if you're wanting to move but may not be indicative of future years.

Do you know enough about his business to understand why his profits have dropped and whether there is anything you/he can do to improve?

If his business is just a low earner then maybe it's time to think about alternatives.

I wouldn't be happy with such a big drop in profits but can imagine it's hard to come to terms with, especially if you've got big plans etc.

A chat is in order I think.

MrsTawdry · 12/02/2015 20:33

It would help if you told us what area he works in OP. People here have a broad knowledge base and there'll be some good advice for you.x

Original poster
twosmallones · 12/02/2015 20:44

Manofspiel - I see your point, but lenders say that I your profit drops from the previous year to the next, then they assume your future earnings will be the same as the last year. So therein lies the problem because it appears like a 30% reduction in income.
He works in a creative industry so it's a case of sky's the limit once you get a name but pay is very low otherwise.
The reason I am upset is that we want a better life for our 2 children, and currently I feel like I am 'over contributing' as I earn the most and do the lions share of the childcare and I tend to be the one that does housework/financial admin/plan stuff for the kids etc. As shallow and potentially naive as it may be, I just keep thinking that if he had a 'proper' job then life would be much simpler...

OP posts:
Letmeeatcakecakecake · 12/02/2015 21:02

You say profit. What's his turnover?

It's just that the profit is below the class 4 NIC and also the income tax allowance. I'm just wondering if his accountant is trying to bring down his profits to the point that he doesn't have to pay any tax and NI, which obviously doesn't look too favourable to the mortgage lenders!

It could be that your husband thought his profit would be closer to the figure he suggested, but his accountant came up with some clever tricks, thinking he was being helpful!

Viviennemary · 12/02/2015 21:09

I think you both have to talk this over together and see if it is in both of your best interests for him to carry on with this business as it's not generating anywhere near a reasonable wage. If there is a good chance it will pick up in the next year or two it is worth persevering. But if this amount is going to be his wages for the next few years then you'll have to think again.

MrsTawdry · 12/02/2015 21:10

Cake I'm self employed and don't earn enough to pay tax...so I don't HAVE an accountant! Why would the OP's husband? Very doubtful he has.

KatoPotato · 12/02/2015 21:14

My DH is self employed as an animator, his work takes shape of four or five jobs in one year so he doesn't use an accountant.

It's taken him a good number of years to build up his reputation and contacts but it's now well worth it as he would from home doing a job he loves!

KatoPotato · 12/02/2015 21:15

Works*

Original poster
twosmallones · 12/02/2015 21:20

Yeah, he doesn't have an accountant. So it isn't a case of massaging the figures. I didn't mention before but part of the reason was an increase in studio rent ate into his turnover.
KatoPotato, that sounds ideal and I truly WANT it all to work out but how many years do we struggle on? Did you have moments of doubt? I'm just having a day where I feel so overwhelmed by the weight of it all.

OP posts:
Naty1 · 12/02/2015 21:23

I agree with pp it is likely with own businesses people put down all their costs like petrol/heating/travel/materials (which dont all necessarily relate to the work done) and lowers their profit so either a loss or break even so less tax paid.
Also set up costs for say building tools if a builder will then be lower in future years.
He may have realised this way you can claim more tax credits.
Unclear as to what he is doing in the unpaid hours.?

IsabellaofFrance · 12/02/2015 21:24

Both DH and I are self employed. DH earns 5x what I do and neither of us use an accountant.

MrsTawdry · 12/02/2015 21:26

YANBU to think he could take on some other work in addition to his own business OP.

Original poster
twosmallones · 12/02/2015 21:34

Thanks for answering that part of my query, Mrs Tawdry.
The unpaid hours are spent doing things like admin, creating marketing materials, looking into advertising, responding to emails, that sort of thing.

OP posts:
maddening · 12/02/2015 21:51

that isn't unpaid work that is part of running his business - it should be included in his pricing

Letmeeatcakecakecake · 12/02/2015 21:56

Mrstawdy yes but we're not talking about your business venture so the fact you don't have an accountant is irrelevant? You will still have to complete a self assessment tax return regardless and many aren't comfortable doing so themselves so hire an accountant. You could have a 100k turnover and a £7800 profit... My question was to see if his overheads/ expenses are high, he has a clever accountant, or he just generally isn't making many sales... Each answer would obviously require very different advice...

MoanCollins · 12/02/2015 22:01

He probably didn't know how much it would be, it's difficult to estimate. And I think it would generally be a pretty good idea to underestimate for tax credits rather than over estimate and leave yourself short.

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