Self-employed allowable expenses
As for what you can subtract from your income when determining your taxable self-employment benefit, the list includes business insurance, a portion of your utility bills if you work from home, office expenses, stocks, and some travel. Please check the government website carefully, as you could have problems with HMRC if there is something left that is not an eligible expense or if you don't have proof of the expense.
Self-employed benefits
Depending on certain factors, you may be able to claim certain benefits. If you are self-employed and not making a lot of money, you may qualify for Income Assistance or the Job Tax Credit, although the latter has been replaced by a universal credit for most people.
Self-employed tax credits
You can claim the work tax credit when you are self-employed, but the rules were tightened in April 2015. Applicants for self-employed tax credits must demonstrate that they are trading on a commercial for-profit basis and that their self-employed work is structured, regular and continuous.
Self-employed Housing Benefit
This is replaced by universal credit.
You may still be eligible for the Housing Benefit and Housing Tax Reduction if you are self-employed but don't earn much money, and certain other factors apply. When the board calculates your eligibility for benefits like housing allowances, they will likely ask you to review business accounts for the last fiscal year or a forecast if you have not yet started a business.
Self-employed Universal Credit
You may be eligible for universal credit if you are self-employed. You will be asked to report your income at the end of each monthly evaluation period and will need to provide details of any payments that enter or leave your business. Your job coach will also ask you to view customer and vendor records, as well as marketing materials.
Your universal credit payments can be calculated based on your assumed income, which is known as the minimum income floor. However, a different method can be used if you are in your first 12 months of self-employment, during which the minimum income floor may not apply. During this period, you may also be entitled to meetings with a specially trained job coach in self-employment.
Self-employed grants
You may be able to get a government grant called the New Business Allowance if you are self-employed. You may qualify if you or your partner received a job search grant or an employment and living allowance, or if you receive financial assistance, or if you are single parents, sick or disabled. If your business is approved, you could receive a weekly allowance worth up to £ 1,274 in total, over 26 weeks. You can also apply for a loan to help finance your startup.
If you require a consultation or self-assessment Persona Finance will be happy to help you. Contact us through enquiries@personafinance.co.uk or send a request on personafinance.co.uk .
