I really don't know what to do - sorry long

[ontheinsideloogkingout]

Have name changed as don't want stbexh to be able to identify me.

Stbexh started an affair about two years ago. Due to a variety of circumstances and lack of my own money I had to put up with this situation. He left a few months ago. I have no income of my own so rely on child maintenance from him and child tax credits. We don't have enough to live on long term and I live in fear that he will stop paying child maintenance. I long for some control over my life. Since he left I have hoped to start a small business of my own.

Over the last few months I have gone on courses, bought materials and stock and thought I was on the way to having a business to run from home. I can't find any other work at the moment so thought this would be a way forward.

I registered as self-employed and told HMRC that I had started self-employment. I was so happy that I phoned a friend and she asked if I had told mortgage company and insurance company. I did not even think I needed to tell them. Anyway they were not pleasant and were not happy for me to run a business from home.

I don't have the strength to deal with this and know stbexh would not agree to changes in our insurance policy. Getting some office space or storage space is too expensive and therefore sadly I decided that it was not possible to continue. Therefore, I de-registered as self-employed and told HMRC to cancel my working tax credits claim. I had only told them about my self-employment less than 24 hours before but the system was saying it would be generating a small payment for me. I said that I wanted it cancelled and to pay the money back and they said they may be able to cancel the payment and if not they would take £1 away from me each week to pay it back . I then phoned HMRC a few hours later and they said that there were no scheduled payments for me at all. I am sitting here terrified I am going to have problems with HMRC for cancelling my Working Tax claim and also that I will no longer get Child Tax Credits.

Anyone able to offer some advice? I feel numb with worry about money and trouble with HMRC.

Do you suffer from anxiety generally? I can't see what you have to worry about here.
And I wouldn't have told anyone about running a business from home!

I work from home and it makes no difference to my insurance policy - your friend is wrong. Why cancel your working tax claim - what are you going to live on now?

What kind of business is it that you intend to run and how large is it? I can only see your mortgage company being upset if you were essentially converting your house from a residence into some kind of industrial premises. Your insurance company may want an extra premium to cover public liability or the cost of stock but again, that depends on the type of business.

Have you run your business plan past a small business adviser, say with your regular bank?

Hi - sorry had to change my name again. I think the business plan is workable but with little capital I would have to build up a pot of money so I need to keep overheads low so could not pay for storage or a working area outside of the home. It would just be me running a business from home with no changes to the house and just a small amount of stock in one of the bedrooms. The insurance company refused to allow me to do this work from home. They were going on about underwriters etc.

I really could not deal with it because my husband is on the policy as well and he would block any changes and I am unable to look for insurance elsewhere as this house has been difficult to insure and he would not agree to a new insurance policy even if I could find one.

I have lived the most miserable life for the last two years that I can no longer face any contact with him as it makes me feel ill just thinking about seeing or talking to him. In addition, he is in contact with one of my children who reports back to him what I am up to so I don't have any relaxation at home and have to be careful that I do everything properly.

My main concern is that I am going to have problems with HMRC due to short registration as self-employed and my asking to cancel working tax credits within 24 hours.

why is the policy anything to do with him anyway?

If you are self employed you are entitled to working tax credits so you don't want to cancel the claim at all - just let them know your earnings.

The insurance has to be in joint names as we have a joint mortgage and are joint owners. The house cannot be sold until the youngest child is 18 so I am stuck with this situation for a few more years.

I had to give a rough estimate of earnings when I called HMRC but feel uncomfortable about that as how can you tell how much you will earn in a year when you have only just set up the business?

I was also horrified when I called up to cancel the claim that just informing them that I had just started a business had generated a small payment of working tax credits even though I had not started making any money.

What a miserable situation.

Re the estimate of earnings, that's normal. It's just like a business plan - a bank will lend money on the basis of a forecast of earnings, HMRC will pay tax credits in the same circumstances. It's not in the least unusual or disreputable. If you are wrong about your earnings (in either direction) payment will be increased or taken back in the following year.

Looking at some Google links, there appear to be two issues - 1. whether people linked to your business might come to the house, in which case you might need public liability insurance and 2. what restrictions there are for 'administration duties' in your current insurance. I would say, don't panic, have a look at the policy and if it's not clear, get some advice, e.g. by ringing up the insurance company, or by talking to a neutral insurance broker perhaps? I wonder if perhaps you could buy a separate top-up policy that is in your name alone?

I'm not really sure that your ex could block any changes, but I can well understand that he would try, and that you are traumatised by that possibility.

Try not to worry too much about HMRC. They are unlikely to be concerned about someone trying to do the right thing by registering (or de registering) as a business.

I know a few people who work from home, and they have never had problems with insurance. However, every business is different. It very much depends on what you plan to do.

Would something like this be an option for you?
www.directlineforbusiness.co.uk/home-business-insurance

Thanks all. I am so worried as I cannot take this forward as I cannot deal with any more hassle from him. I have gone through so much for two years that I feel I have to wear a mask in public and at home and I know that I am not far off breaking point so really need to keep him away from my life.

I spoke to the insurance company and they were unpleasant and were going on about the underwriters. I really cannot do anything that would make the insurance company not want to renew the policy so even talking to them is not an option. Luckily I did not give them my details. This house has had many problems and I don't want them to not want to continue to insure the house if a business is run from here. Frightened to even ask as we have been dropped by an insurer before....

Do you think I should write to HMRC to explain about the insurance and why I could not continue with self employment and the working tax credit claim? I am so worried that they will think my behaviour is odd and stop my child tax credits.

You've canceled the working tax credit claim. If there is any money that will be forthcoming to you from it, send it back.

Do nothing about the insurance because you can't do anything anyways. Its been blocked by your ex. Leave it alone.