Put Off Going Self Employed As A Writer

A question about : Put Off Going Self Employed As A Writer

I have been put off from going self employed as a writer, simply because when I phoned the Working Tax Credit Office and explained to them the nature of my business, they gave me the impression that it would not be a wise step, as when I told them my initial anticipated earnings would be just over Ј200 per month (from book sales) and that I would be working 30hrs pwk on my business, the lady who took me call couldn't seem to understand how I would only be making this amount, despite working all those hours on my business. She them said when I registered with HMRC, I would have to keep a note of EVERY single thing per hour (e.g. invoices, customer assignments etc.) whilst working on the business. Not surprisingly, this has put me off making a claim as a self employed person.

Are there any other writers who have experienced this? If so, did it put you off starting your own business and resigning yourself to claiming dole?

The whole thing has not only dissuaded me, but depressed me, as I really wanted to start my own business.

Best answers:

• Build it up while on JSA, declaring profits of course, then come off it when profits are at a reasonable level? I'm in much the same position, but I'm not relying on getting tax credits or any kind of extra help with UC coming in soon.
• Do you mean write a book? Could you not do this in your spare time until it becomes viable? Tax credits and HMRC are really cracking down on self employed people working lots of hours for mimimal pay and then topping it up with WTC. On your estimates even if that whole Ј200 was profit you would be working for less than Ј1.65 an hour. When universal credit comes in you would be treated as if you were earning minimum wage even if you weren't.
• Yes, I understand about the Universal Credit rule. What I am saying is that I really wanted to make a go of my writing business, but how can I do that if, during the first year or so of my business, it is not really considered a viable business if it is not earning at least the minimum wage right away???
• It basically means that under JSA you could declare the work and receive your JSA, if you started declaring it under UC then they would assess the hours you work as you receiving minimum wage even if you weren't. If you were already declaring under JSA there would be a period of time when the JSA rules would still apply to you. This TP is broken if you declare a change of circumstances. It's all quite complicated and we don't know how it will work in practice but it will be some time before you would be transferred over to UC anyway.
• (I must add though - I cannot comment on whether writing should be classed as "proper" work, as I've never done it. I was not commenting based on what I think, just what I believe may be a general perception)
• I'm not on JSA or any benefit with conditionality at the moment, but I consider my writing a hobby that might make some money (it hasn't yet and won't for at least a few more months), not a job. Even if I spent 30 hours a week, it wouldn't occur to me to declare it in that way, so it's useful to have that info sammyjammy.
  How do they differentiate between a hobby that makes declared money and a job? Or does it become a job in the dwp's eyes as soon as you make money?
• I suppose once you're making money, hmrc have to know and then it's a job. I had just never thought of it in that light as writing has been my hobby since I was 10.