Val Buckingham answers some childcare questions for all you mumtrepreneurs out there…..

Self-employed people may not realise that they are eligible for Tax-Free Childcare.

While some government childcare schemes are not available to the self-employed, you may still be able to claim Tax-Free Childcare. Here, we explain the eligibility guidelines for the scheme, along with how to apply.

So, What is Tax-Free Childcare?

Tax-Free Childcare is a scheme operated by the government to provide financial support for new parents with children in childcare.

Parents can receive up to £2,000 per year per child to help with the costs of childcare. If you qualify, the government will pay £2 for every £8 you pay to your childcare provider, on the proviso that this is done through your Tax-Free Childcare online account.

Tax-Free Childcare for the self-employed – eligibility

Self-employed people are eligible for Tax-Free Childcare just like employees. In fact, the eligibility criteria are less strict for the newly self-employed – you don’t need to meet the £120 a week earnings limit if you started your business less than 12 months ago (your start-up period).

However, if you’re on parental leave, you cannot apply for Tax-Free Childcare for the child you are currently on leave for.

In order to be eligible for Tax-Free Childcare you must be in work, or getting parental leave, sick leave, or annual leave. You (and, if applicable, your partner) must be earning at least the National Minimum Wage for at least 16 hours per week, but this earnings limit does not apply to the newly self-employed, as above.

You can average your self-employment income across the year to meet the minimum income criteria, providing you aren’t also getting employment income.

Additionally, your child must be 11 or under, and they must live with you most of the time. Foster children are not eligible for Tax-Free Childcare, but you can claim for adopted children. If your child is disabled, the amount you may be entitled to increases to £4,000 per year until they are 17.

To qualify for this extra amount, the child must be in receipt of Disability Living Allowance, Personal Independence Payment, or the Armed Forces Independence Payment, or must be registered blind or severely sight-impaired.

Can the self-employed get childcare vouchers?

Childcare vouchers are generally provided through a scheme operated by employers. They allow new parents to take up to £55 per week of their salary as vouchers, and employees do not pay National Insurance on this amount.

Childcare vouchers are not available to those who have successfully applied for Tax-Free Childcare. However, as the schemes are operated by employers, they do not apply to the self-employed anyway.

Tax-Free Childcare and other benefits

You can’t claim Tax-Free Childcare at the same time as Working Tax Credit, Child Tax Credit, or Universal Credit. If you successfully apply for Tax-Free Childcare, your Working Tax Credit or Child Tax Credit will stop immediately, but the government says you should apply for Tax-Free Childcare before you cancel your Universal Credit.

How do I apply for self-employed Tax-Free Childcare?

You’ll need to apply online for Tax-Free Childcare if you’re self-employed. The process takes around 20 minutes. You’ll need your National Insurance number and your Unique Taxpayer Reference, along with those of your partner if applicable. Some eligibility applications are settled immediately, but it can take up to seven days.

With thanks to Josh Hall

Aldershot Enterprise Centre’s annual Tea on the Lawn is a community andnetworking event attended by members of the community and local businesses. It is a great opportunity to meet and connect with other businesses whilst enjoying food, refreshments and a vintage singer in the open air in the middle of summer…

….This year it was less than sunny as the heavens opened but we didn’t let that dampen our spirits or stop us having a good time. Inspiring Enterprise had space there for participants to come and exhibit and we had a wonderful selection of new businesses in attendance:

Victoria Meering is an artist specialising in acrylic pouring work, small tonal portraits from photographs and impressionistic watercolours.

Zoe Ellis-Moore (aka ZEM) is a lifestyle shoe brand with a fun story to tell. Established in following Nicola from Coronation Street being sent home from work for not wearing heels. The main objective is to flaunt a distinctive sense of style in the workplace whilst wearing flats.

Sarah Jones is an Artist, Art Tutor, Artsworker and owner of Create and Calm, Sarah is a qualified Life Coach and holds certificates in Cognitive Psychology, NLP, Mindfulness and Stress Management, alongside Fine Art and teaching qualifications.

Natalie Priest owns Radiant Chameleon Animation and Illustration, which specialises in 2D digital animation and Illustration work, she creates fun and appealing character design and tell compelling stories, some of which are about raising awareness of disability and mental health.

Julia Lynn Floral Designs takes inspiration from nature to create bespoke designs. Julia also hosts floristry workshops. She uses locally sourced fresh flowers and sustainable materials.

Julia even created some beautiful bespoke displays especially for the event, including a beautiful bouquet to give away in a competition.

We all had a great time, made some good connections and look forward to next year…

Sarah is a Mumtrepreneur who runs her photography business and has been helped by Inspiring Enterprise at the university of Winchester.

Here she tells us how Inspiring Enterprise helped her:

“In 2016 I became a mother. The reality of trying to juggle a full time job in an independent boarding school with motherhood led me to explore starting my own business. The need for financial security for my family as well as a long standing passion for photography, motivated me to launch Hannibal-White Photography in 2016. 
After a few months of hard work setting up the website, investigating the difference between being a sole trader and a limited company, sleepless nights of wondering if I was good enough for people to buy my photographs, I knew I needed some extra guidance. As an alumni of the University of Winchester I was thrilled to discover I could access the Inspiring Enterprise programme and I started working with them in 2017. As a new mother the weekly sessions gave the opportunity and the headspace to ask questions to professionals, gain advice from experienced business owners and let’s face it, eat a meal in peace and quiet! 
The course encouraged me to explore my photography and find a unique selling point. Important lessons about social media introduced me to Instagram and the hashtag, giving me vital hints and tips to grow and expand in the online world. Networking was a completely new area to me and a slightly daunting one, but the weekly sessions introduced me to other business owners some of whom I have collaborated with on numerous projects in the last 18 months. In the world of the rising mumtrepreneur so many new mothers are seeking ways to find a work life balance and more and more are turning to business ownership and I believe guidance such as this has been a valuable key to my success. 
Since completing the course, I have started a second business called Bump & Boo, running local events for parents to be in conjunction with Winchester Guildhall. There’s a long way to go and I have so many exciting plans for the future, but I truly believe I had one of the best starts possible thanks to the scheme. Inspiring Enterprise gave me the confidence to achieve more on my own than I ever thought possible.” 

CHECK HER OUT 
@hannibalwhitephotography

If you’re a student thinking about starting up on your own after graduation, or you have enrolled on our programme with Inspiring Enterprise Winchester, you may be asking yourself this very question. Val Buckingham from Fredricks Foundation has this advice for you…

As a  small business owner, your student loan repayments will need to be included on your annual Self-Assessment tax return.

How much do I need to be earning before repayment starts?

If you took out your loan in England or Wales before 1st September 2012, you will repay your loan under HMRC’s Plan 1. You’ll start repaying your student loan the April after you leave your course. For the 2019/20 tax year, which starts on 6th April 2019, you will need to make repayments if your income is over £364 a week or £1,577 a month (before tax and other deductions). This is a salary of £18,935 per annum.

You’re on Plan 2 if you’re an English or Welsh student who started your undergraduate course on or after 1st September 2012. The earliest you start repaying is when your income is over £494 a week or £2,143 a month (before tax and other deductions). This is a salary of £25,725 per annum.

How and when do I repay?

Repayments are made automatically through the tax system and stop once you’ve paid off your student loan in full. This applies whether you’re self-employed or in direct employment.

Full-time courses – you’ll start repaying the April after you finish or leave your course, but only if you’re earning over the repayment threshold. For example, if you graduate in June 2019, you’ll be due to start repaying in April 2020, if you’re earning enough.

Part-time courses – you’ll be due to start repaying the April four years after the start of your course, or the April after you finish or leave your course, whichever comes first, but only if you’re earning over the repayment threshold..

Postgraduate Loan

You’re on a Postgraduate Loan repayment plan if you’re an English or Welsh student who took out a Postgraduate Master’s Loan or Postgraduate Doctoral Loan.

If you took out a Master’s loan, the earliest you start repaying is when your income is over £404 a week or £1,750 a month (before tax and other deductions). This is a salary of £21,000 per annum and it’s payable from the first April after you leave your course.

If you took out a Doctoral loan, the earliest you start repaying is when your income is over £404 a week or £1,750 a month (before tax and other deductions). This is a salary of £21,000 per annum and payable from either the:

• first April after you leave your course
• April four years after the course started.

How does this affect me as a self-employed person?

If you complete and return your 2018/19 Self-Assessment form to HMRC by 31st October 2019, HMRC will calculate how much you need to pay for student loan repayments, as well as the usual tax and National Insurance contributions. You can get your accountant to perform these calculations for you if you prefer and include these on your Self-Assessment return for submission to HMRC by the deadline of 31st January 2020.

Your tax liability must be paid to HMRC by 31st January following the end of the tax year. HMRC will pass the details of your student loan repayment amount to the Student Loan Company, who will update your loan account accordingly.

What if I didn’t get my Self-Assessment in before 31st October?

If you don’t submit your Self-Assessment to HMRC by the 31st October, you (or your accountant) will need to calculate the repayment amount and include it on your Self-Assessment return. Every student loan holder is required to pay back 9% of their annual gross income that falls above the threshold.

To work out how much you need to pay, you need to:

• Calculate your annual gross income by adding together your gross salary, gross dividends, and any other earnings
• Subtract the threshold that applies to you (either £18,935 or £25,725 from Plans 1 or 2 highlighted above) from your annual gross income to find out how much over the threshold you are
• Calculate your student loan repayment for the year which will be 9% of the remaining amount.

The balance is your annual payment. You must submit your annual Self-Assessment and the payment for all outstanding tax liabilities, including your student loan, by the HMRC deadline of 31st January to avoid any fines or penalties.

Early repayments

There’s no penalty for paying some or all of your loan early.

If you’ve nearly paid off your loan

You can avoid overpaying if you know your loan will be paid off within the next two years. State on your Self-Assessment tax return that your loan will be paid off in the next two years. Send your online tax return to HMRC before 1st November to avoid overpaying.

With thanks to Crunch

Samantha, is a registered practising psychotherapist, accredited with UPCA (Universities Psychotherapy and Counselling Association) with a passion for working with youth and offers both short and long-term therapy to clients, drawing on several different theoretical approaches to suit her clients’ needs.

While having relevant qualifications, skills and experience to offer her counselling services, Samantha joined the Inspiring Enterprise programme to increase her knowledge on the commercial and business aspects of starting and running a sustainable business venture.

When Samantha first met up with Inspiring Enterprise Mentor Richard Ryan she was not in any form of paid work and looking for direction and guidance on how to start up a business that could meet her financial and personal circumstances and wanting to learn more about business planning, marketing as well as the financial aspects of running a sustainable business.

Samantha herself has had to deal with personal challenges.  Despite being severely dyslexic, struggling with numbers, a wife to a husband with health challenges and mum to 2 children, one a teenager with autism, Samantha applied herself and availed herself of the one to one support available, taking on board the knowledge learned on the programme.

She has gone on to monetise her skills and secure a reliable stable income from her services for herself and her family and developed a business which is now at a stage that she receives regular enquiries and referrals for her services.

Inspiring Enterprise mentor Richard Ryan comments that at the most recent meeting he was told of a nice “problem”. Samantha’s work diary is at full capacity, and she was having to decline immediately taking on more clients. A lovely position to be in for a start up business. He adds that it is both gratifying and inspiring to see her reap the benefits of her personal determination, implementing her plan and following through on actions.

When asked to share her thoughts on the Inspiring Enterprise programme, Samantha comments: “Inspiring Enterprise has been an enormous help. Although I had already completed years of studies and voluntary work it’s still very difficult to set up as a practitioner on your own. Inspiring Enterprise did not only hold my hand through the whole process, they also taught me that going into business does not have to be painfully difficult. My dyslexia hasn’t held me back and I am now in a position where I have a substantial waiting list. I feel very blessed to have had such an amazing mentor and I will always be grateful for all the support I have received.”