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9ice

Free Member
Aug 10, 2010
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hello All,

I am new to the forum, a friend refered me here and hopefully i will find answers to my questions.

I am alone Mum of 2, currently working with an anual salary of about £23K/annum, i have registered a ltd company(as acompany director) to provide virtual services to companies (subcontracting sort of)

the estimated income from this company will be around £300-500 per month, roughtly £5000/annum.

this new adventure will be alongside my full time job, in the evening mainly once i have put the kids to bed. i am ready to work without or taking a little monthly salary from this company at the start.

I am wondering if ths is a good thing to do? will this affect the amount i am getting on working & child tax credit?

your honest replies will be much appreciated, the whole idea behind this new adventure is to be able to persue this Full time as time goes on. and who knows even further...

many thanks in advance

regards
 
If you earn additional income from the new company and pay this to yourself in any way you would have to declare this in your tax returns and in information provided for working and child tax credits. I am not sure what the thresholds are for these but I think they are coming down. If your additional income causes your overall income to rise above such thresholds then this will affect your other benefits.
 
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two things spring to mind:

1, what are you going to provide that a business wants outside office hours? normally if we want something doing, we would want it now (ish) and we might want to talk to you about it which you won't be able to do.

2, if you working full time how are you going to market yourself and then turn enquiries into money if your working?
 
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it's a tricky subject. i am lucky enough to be in my mid-20's still and not have children so that worry isn't present, but i have often wondered how i would go about my routines having children "getting in the way" (sorry for the term!). I live with my girlfriend and often find it difficult to focus on work when i work in the evening. before I did what I do now, i was in employment, and we found my moonlighting to be a real problem.

I think if you are confident you can balance your personal and working life then you should go for it. if there are any real doubts, consider carefully. naturally, i would say "go for it" as i imagine most on here will.
 
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9ice said:
hello All,

I am new to the forum, a friend refered me here and hopefully i will find answers to my questions.

I am alone Mum of 2, currently working with an anual salary of about £23K/annum, i have registered a ltd company(as acompany director) to provide virtual services to companies (subcontracting sort of)

the estimated income from this company will be around £300-500 per month, roughtly £5000/annum.

this new adventure will be alongside my full time job, in the evening mainly once i have put the kids to bed. i am ready to work without or taking a little monthly salary from this company at the start.

I am wondering if ths is a good thing to do? will this affect the amount i am getting on working & child tax credit?

your honest replies will be much appreciated, the whole idea behind this new adventure is to be able to persue this Full time as time goes on. and who knows even further...

many thanks in advance

regards
Click to expand...

I do like the idea of this type of business and can see good growth potential in the future. For a small business, it has potential to allow the business to expand felxibly, for the larger business, it is cheaper than paying for a temp etc. Good luck with it- if I can be any help, just let me know. I am not in the market for VA services at the moment, but could well be in the next few months.

Mark
 
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I really appreciate all your comments, i guess i will have to go for it and see,
so will i need to inform the working & Tax credit office as soon as i start working or will this be taken into account once i fill my first Tax return/fill my annual tax... for my company?

solopreneur : you are right, i have been dreaming of going on my own since, this small business (auto entrepreneur the French call it), where i come from - is getting common these days, especially in the Virtual services field.

this company i am going to subcontract with is a US based, reason why it's out of hrs (from 2pm to 12am) UK time, so i will be able to fit some hrs here and there, i must admit it's not going to be easy with 2 younger kids, but like i said the whole idea behind this is to me able to do this full time in the next months. (by the way: the role is more customer service role)
who knows, this could one day be extended, expecially with my Language skills.

we'll see.
thank you all
 
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Looks like an exciting venture 9ice

As a director, you will probbably pay yourself a salary - perhaps on PAYE. If so you will need to inform the tax credit people. If you keep that salary to a minimum and then at a later date pay yourself a declared dividend, then that is additional income that you would put into your tax return. Withthe latter you could put off telling the tax credit people because at this stage you have no idea what the dividend amount will be.

Hope it goes well for you
 
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Hi. First off, I think you're doing incredibly well holding down a job that pays £23k a year when you have two young kids. I take my hat off to you.

To address your question about working and tax credit: my understanding is that your limited company would have to pay you at least the minimum wage for the hours that you work for it. How many hours per week you put in for your limited company might be harder to gauge. It could be as little as three hours a week, in which case, you could be looking at a hit on the working and tax credit, but it might not be a big hit.

I'd say you could test how well the situation is working, and whether it's likely to continue, for about eight weeks before declaring it.

But in any case, I don't think the implications for your tax and working credits ought to hold much sway with you. The government has all benefit payments firmly in its sights. It has changed the inflation index by which they will rise each year, which means the real value of all benefits are going to diminish over time. Anything you can do that pulls you away from dependency and makes you and your family stronger has to be a good thing.

If I were in your shoes, I would be considering more how easy it would be to manage alongside the needs of your children, and how much nearer it might be taking you to your own personal goals. You said you have long dreamed of being your own boss, so this might be too good an opportunity to pass up. I would also say that children, even quite young ones, do learn to respect/adapt to a parents' working needs, though there is always some degree of conflict, however slight.

I'm guessing, since you went to the trouble of setting up the company, that you were confident and gung-ho, but either friends and family have been talking and nibbled away a little bit at your confidence. This probably happens to everyone who sets up a business. You would be an odd person if you did not engage in a last minute panic.

Like I said, the needs of my children would be number one priority, but it sounds like you have more to gain than lose.
 
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I think it's really a good opportunity . Not only increase the additonal salary for yourself ,but also enrich your exeprince . May be there are some trouble to keep the balance between the family and the work ,but when you are on the way ,you will try to solve the problem .It's aslo a kind of treasure of your life.
I am a salesman from China ,which is mainly for full leather small leather products such as wallet ,purse ,passport cover etc. If i have another chance to own more and experience ,i will seize the chance without hestitation.
If any one ,interested in importing goods from China ,glad to help you .Of course ,you should pay me commission.
 
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If your additional income causes your overall income to rise above such thresholds then this will affect your other benefits.
 
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thank you all for your supportif messages, i really appreciate each of them, i have just started my 4weeks traning with this US based client, it's a bit all over the place at the moment, hopefully things will get better,i'll see how things go,

I will have no other options than to carry on combining my job and this project i am entering in, and as for my kids, yes they're my number 1 priority, and for some reason they've started to understand not to disturb when mummy is on the computer which is quite good, and i am Glad i will be working once i finish the training, US hrs.

so we'll see, i will keep you all posted

many thanks once again
 
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9ice said:
the estimated income from this company will be around £300-500 per month, roughtly £5000/annum. i am ready to work without or taking a little monthly salary from this company at the start.
Click to expand...

How have you estimated that figure? And is that the income you will be taking from the business or the income of the business?

If thats the businesses income, i don't see how you are going to make any money.
 
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Hi Mark-Davies,

My estimation is based on the min working hrs of 20/week, with hourly payment of just under £7.

cheers
 
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TotallySport said:
two things spring to mind:

1, what are you going to provide that a business wants outside office hours? normally if we want something doing, we would want it now (ish) and we might want to talk to you about it which you won't be able to do.
Click to expand...

I have looked into virtual office (telephone answering) but the problem I cam up against was that they all finish at 5:00 when my clients are most active!!

Being able to go out knowing the phone is covered on an evening after I have been working all day could be useful.

I am not looking just at the momet but just saying with more and more online business taking orders into the evening, I think there is an opportunity here.

Best wishes for it.
 
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Well i dont earn that much, i work part time £11,000 a year for a business and running my own on the side. If your part time employment will be less than £5300 make sure you sign the form to say you dont need to pay NI contributions. Obviously you will have to pay tax on income as a whole anyway

Gemma
 
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It will effect your working tax and child tax credits, obviously not child benefit

You can claim working tax until you earn £60,000 a year - obviously with your extra income your working tax credits will go down -i think you have to be earning around £30,000 to be better off without tax credits than you would be working 16 hours and claiming tax credits. This is what is wrong about the system, no reward for trying to provide your family with the best.

I have 2 kids under 2, i cant work full time as childcare is so expensive so can only do 16 hours a week when mum babysits and then self employed working from home i can look after the kids.

Gemma
 
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hi Gemma,

thanks for your comments, it's good to hear from someone in the same situation, at the moment, i am still going through this training, i have made some friends who were in the same situation and today running their own small business (working for themselves) they're tellong me the same thing, to go for it

we'll see,

thanks
 
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