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Paid by paye and self employed. Tax credits?

3 replies

bathshebaeverbusy · 17/06/2019 20:28

I currently get working and child tax credits. I am paid through PAYE and earn £9000 a year.
I have just graduated and am about to set up working at home - self employed - but this will be in addition to the paye job and will take a while to build up my clients.
How does this affect tax credits? thanks

OP posts:
HebeMumsnet · 18/06/2019 14:41

Just bumping this for you OP.

Can anyone advise?

Two4Tuesday · 18/06/2019 17:06

Are your hours of work increasing to above 30 per week with working both jobs?

Do you expect your income to increase at all whilst you build your client base, or is it likely to stay at £9k from your PAYE job?

Those would be the two main things which would affect your Tax Credits. I assume you are receiving WTC - do you have DC and are also receiving CTC?

It's worth considering whether or not you would be better off on UC as well. However, I don't believe either of your potential changes would force a move to UC at this stage.

DustyDoorframes · 18/06/2019 18:43

UC is horrific for the self employed (to be fair, TCs are stressful enough too...) so I'd stick to tax credits in your shoes.
It will be fine, log in and update things , to add in the new hours and an estimate of income. If you estimate low and things go well remember you may well get overpaid- so try to put some aside just in case if you earn more than you thought you would, and update your estimate every quarter or so. And remember to put aside tax money too! If things go really well and you end up with too much income for tax credits (hurrah!) it's worth keeping the claim going for a few years even though you get 0, in case you have a crap year and need the support again.

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