Tax Free Childcare Self Employed

[gigi556]

Just tried to sign up for tax free childcare and application is saying that I'm not eligible because I don't meet the minimum income requirements.

I'm newly self-employed. I've set up a limited company so also a director of my own limited company. It says all over the internet that the income requirements are exempt for 12 months for the newly self employed.

I'm going to call HMRC tomorrow to find out what the situation is but I'm wondering if it's telling me I'm ineligible as I've ticked self employed and a company director on the application. So annoying!

I mean I could say I earn more than the £125 a week as hopefully I will after 12 months but I know I probably won't for several months.

Did it ask what your expected earnings would be, or ask you to confirm that your earnings would be expected to be over a certain amount?

Any other reasons for why it may deny you? I would have thought it would be a case they needed to look at in more detail, thus not give you a decision immediately.

Pretty sure you are VERY limited as a sole director of your company
BUT
If you pay yourself £800 a month through PAYE then you'll have no tax or NI due
your Payslips will meet the childcare requirements
and the "wages" will go as directors loan till the business makes money (VERY tax efficient)

talk to your accountant though
if you do not have one, get one as they will save you a fortune

I do have an accountant. They have set up PAYE for me for my tax free allowance and NI contributions. However, I literally just registered my company and don't expect to pull any income out for several months. Everywhere online says if you are self employed you get 12 months exemption from the income requirements for tax free childcare. No where does this say you must be a sole trader rather than limited company

However, I literally just registered my company and don't expect to pull any income out for several months
You are an employee of the company.
It will pay you a salary every month to get your allowance.
Whether the cash moves or not is irrelevant.
Talk to your accountant. They are your business adviser and should be able to help.

Well I went back in today and filled all the questions in the same and got approved! Rubbish website.

Anyway have put an email in to my accountant as well.

Could the problem be because you put down you're self employed? You're not. You're an employee/director of your own company, so for tax purposes you're an employee, not self employed.

Agree with badbad
You are not self employed.
You are an employee of the company.

If you are a director of a limited company you are not self employed. You are employed by the ltd company.

You’d need to be a sole trader or partnership to be self employed.