Child Tax Credits - some advice needed please!

[ManAboutTheHouse]

Hi all,

First-timer here, & need some advice on how best to proceed with the Child Tax Credits (CTC) peeps regarding our change in circumstances.

I've recently joined-up with my wife (a CM of a couple of years experience), as a husband / wife partnership for our childminding business.

Since we've made our business a full-time thing, our bookings have increased too (along with our projected earnings on the childminding-side of things, up to end of March 2011).

I've earned a certain amount between April 2010 & now (from my previous job), which I will need to mention to CTC.

However, since we now run a 'joint' business (& all income is joint), I'm not technically receiving a wage.

Therefore, does anyone have any pointers regarding the information we need to pass on to the CTC dept (as we need to declare 'individual earnings'), to ensure that we can maintain the level of CTC we currently receive, & dare I say it, even see if we can increase what we can receive?

To give you some background info, we will be earning less jointly now, compared to when I was in my previous job, & when my wife was doing CM part-time.

Thanks in advance!

Bump because I'm curious. What do you do with regards your tax and ni payments? How do you deal with the expenses of utilities, telephone, insurance, investing in new toys, art materials etc?

I would have thought you would split it evenly as 'individual' incomes and make the most of the tax free thresholds. You are effectively 'equal partners' and I assume you're both working full time so it's permissible to split the income equally. If only 1 of you was working full time and the other part time then you would have to split it up in a different way.

Have a look here for the technical steps of which papers you have to file etc.

hmrc website

Unless you are registered with hmrc as a partnership you will be treated seperately and will have to split the expences atc. If you are both now registered as self employed you can now register your business as a partnership and your previous income will be dealt with on the tax return.