Self Employed & Tax Credits
mummy2boys53 · 06/02/2018 14:46
Hi, my other half was employed but now finished there and going self employed. He'll be working for a few different people along with his own venture that he has. My question is, how does this work with the child tax credits that we currently get based on his employed figures. I've done numerous searches online but finding it really hard to get an answer. Does anyone have this experience and offer any guidance for me?
gillybeanz · 06/02/2018 14:51
Yes, we are self employed and employed at various times.
You have to provide info of earnings the same as for employed.
You have until January to submit the last financial years, the same as for HMRC.
To avoid over payments though when you estimate your income you need to be realistic, don't make it too small or you'll end up havving to pay a lot back.
If you are overpaid it's the same principle as for those employed, you pay back at 40% of the overpayment every month, unless you can't afford it and they'll allow less with a few forms filled in.
We just state the hours worked and amount paid (estimate) each year when we do the renewal.
AlpacaLypse · 06/02/2018 14:52
Hi I do this. It's based on your previous year's earnings, the same figures as you use for your self assessment for tax. Once set up it's pretty smooth.
I found the people who answer the phone (once you've fought your way past the automatic receptionist and all the press 1 for this 2 for that etc!) were very helpful.
AlpacaLypse · 06/02/2018 14:53
Sorry that's the people who answer the phones at HMRC!
mummy2boys53 · 06/02/2018 15:57
Do I just ring and say that he is now doing his own self assessment and we have estimated his earnings at x amount. I was thinking of keeping the figures the same as what we currently have them in for this tax year. Likely to be over estimated but would rather that then under. Is it as simple as that - or do I have to go through the ins and outs of how he will be earning the money, what jobs he's be doing etc etc. X
Kazzyhoward · 06/02/2018 18:59
You just tell them his estimated profits and number of hours he's working.
mummy2boys53 · 07/02/2018 12:33
Thank you for your advice!
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