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Tax credit renewal and self employed profit

5 replies

champagneplanet · 20/05/2020 10:35

Doing my tax credit renewal currently, we don't get much at all, most of it goes towards an overpayment they made a number of years ago.

In March DH, who is a contractor but usually paid via PAYE by an umbrella company, had to register as self employed to join the books of a new agency. He got a CIS number and only did half a day of training for this firm. He was paid £80 and they deducted £16 tax via CIS, leaving him with £64.

So for the renewal, is 'self employed profit' £64? It's such a small amount to mention but I want to get it right. TIA

OP posts:
champagneplanet · 26/05/2020 19:19

Just thought i'd bump this up in case anyone was around to help...

OP posts:
Uhoh2020 · 26/05/2020 19:42

It's a difficult one because they want to know what his expected earnings will be which Is like asking how long is a piece of string

champagneplanet · 29/05/2020 10:07

The SE amount i'm talking about is for when i'm confirming last years earnings for 19/20 to make sure we were paid the correct amount.

He earned £80 and took away £64 after tax was taken at source. I think i'm right in saying his profit was £64 but I just want to be sure i'm correct. I know it's such a small amount to worry about.

We will put £0 for self employed profit for the current year and he isn't planning on working for them again in the near future.

OP posts:
GeorgieTheGorgeousGoat · 29/05/2020 10:19

My profit is before tax as a SE so I would put £80. I don’t know what this CIS is so wouldn’t like to say for sure but I’m just speaking as someone who completes a tax return, my profit is after expenses but before tax and NI.

champagneplanet · 31/05/2020 09:38

Sorry, CIS is construction industry, so they pay 20% tax at source, that's what the deduction is for. No NI though.

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