Registering as self employed... can I still get working tax credit??

[Dahlia]

Hi, I am thinking of taking a new job - its cash in hand, so apparently I can register as self employed and then still claim my working tax credit - the post is 20 hours a week but only in term time (its a housekeeping job) so does anyone out there know if this is in fact right, and i can still claim working tax credit, plus all the other stuff i currently get like council tax benefit? Am a bit wary of it being cash in hand, but as long as I am declaring it by being self employed, is that ok? And do you pay a dob of tax once a year or what? If thats the case, do I give them an estimate of my yearly income? That would be easier as some weeks I won't get paid (ie school hols). Please help! It sounds like a fab job with a lovely employer, he just doesnt want the hassle of sorting tax etc himself..

Not sure if it's a self-employed position if you're working regular hours for one employer like that. He might have to employ you legally.

yes you can receive the same benefits if you register as being self-employed. Contact your local tax office, explain the situation and they will send you a starter pack for those going self-employed for the first time.

you pay tax twice a year based on your estimated overall yearly income.

dont forget you can deduct expenses like working clothes etc. too.

RM is right though, if you do not have other clients and income from other sources you will be deemed to be employed by the person you are working for. You may get away with it for a while, but not for long.

So if i was getting income from another person, say if i was a cleaner somewhere else too, then would it be legit??

and also, it might end up being quite a casual job, some days in, some weeks off kind of thing. would that make a difference too?

Yes, because you would have several clients.

Sorry to be so dim :) so as long as I had income from whatever work, from more than one source, then I could legitimately be classed as self employed?? I just really want this job, and want to do everything above board. Thanks so much everybody x

yes if you work for more than one "client" then you can be self-employed. A single client would need to employ you, I think its to get over the fact that some employers may force you to be self-employed just so they dont have to pay NI/sick etc.

Not quite as simple as that - it's based on things like whether you set your own hours, provide your own equipment/tools, could send someone else in your place. This might help make it clearer:
www.direct.gov.uk/en/Employment/Understandingyourworkstatus/Workersemployeesandselfemployment/DG_10027916