I currently earn about £520 a month. I want to start a business, does business income come in to the earnings limit? As in, we are allowed £520.04 a month max, so if I earn a little more from the business a month, can I still get carers?
So my employment gives me £520 a month and then my business would give me around £40 extra a week, so a bout £160 on top of £520. Does the limit of carers get affected by business earnings or is it just employment?
Quite a bit out there Internet search wise … CARERS ALLOWANCE AND SELF EMPLOYMENT … several other forum postings plus direct advice from such organisations as Turn2Us / MoneySavingExpert / LowIncomeTaxReformGroup.
Have a read of some of those links … self employment from many angles … including the various deductions out there against tax … watch out for those that count against tax but not for deductions when computing limit for carers allowance.
Quick guide for what expenses are tax deductible :
Having run a small business, it is VITAL that you understand the difference between income and profit.
HMRC do a list of what can be deducted, workwear, an allowance for heating and lighting, laundry, all sorts of things. Print off the list and keep it with your accounts.
BEFORE you start, make sure you know what information HMRC will want at the end of each year. If you keep your list of expenditure in exactly the same order as they will want at the end of the year, it will save you an awful lot of time!
My other tip would be to work out exactly how much you have earned, and spent, on a MONTHLY basis.
Then add each end of month figure to the previous months total. Then at the end of the year you are just adding the total of the last month to the previous 11 months.
(I used to run the accounts for a hospital in Australia in the days before computers, so all done on paper. When my husband and I later ran a small business in the UK, I ran our own accounts in the same way. After a “spot check” from HMRC they wrote and complimented us on the way we kept our accounts!!!)