Are You a Small Business Owner Below the Tax Threshold? What Support You Could Be Eligible For, Especially if You Have a Family
Running a small business can be rewarding, but it can also be financially challenging, especially when your profits are below the tax threshold. Many business owners don’t realise that even if you’re not paying income tax, there may still be support and reliefs available to help you manage your finances, particularly if you’re supporting a family.
Understanding the Tax Threshold
In the UK, the personal allowance for income tax is currently £12,570 (2026/27). If your business profits fall below this, you don’t pay income tax. However, being below the threshold doesn’t mean you’re ineligible for financial support, it just changes the types of relief you can claim.
Support for Small Business Owners
Even if your business income is low, several forms of assistance may be available:
1. National Insurance Credits and Contributions
If you’re below the tax threshold, you may still need to pay Class 2 National Insurance contributions if your profits exceed £12,570.
Paying voluntarily can protect your entitlement to State Pension and other benefits.
If you have a family, this ensures you continue to build entitlement for family-related benefits such as Child Benefit or maternity/paternity support.
2. Business and Startup Reliefs
Small businesses may qualify for:
Small Business Rate Relief – reduces business rates for eligible premises
Annual Investment Allowance (AIA) – allows you to deduct the full cost of qualifying equipment in the year you buy it
Seed Enterprise Investment Scheme (SEIS) / Enterprise Investment Scheme (EIS) – offers tax relief for investors if you’re seeking external funding
These schemes help reduce costs or attract investment, even if you’re not paying income tax yet.
3. Support for Families
Running a business while supporting children or other dependents can stretch finances. You may be entitled to:
Child Benefit – automatic if you have children, regardless of income level, up to certain income limits
Universal Credit or tax credits – if your household income is low, even small business owners can claim support to cover childcare, living costs, and housing
Working Tax Credit / Child Tax Credit – these can help top up household income if you have a family, even if your business isn’t generating large profits
💡 Tip: Make sure you declare all income correctly. Even if your business income is small, accurately reporting it ensures you can access family support programs.
4. Emergency or Local Grants
Some councils, charities, and business support programs offer small grants or hardship funds for low-income business owners. These can be particularly useful if you’re balancing running a business and supporting children or other dependents.
5. How JSB Accountants Can Help
At JSB Accountants, we understand the unique challenges of running a business below the tax threshold while supporting a family. Our team can help you:
Identify all reliefs, credits, and support programs you’re entitled to
Plan National Insurance contributions efficiently to protect long-term benefits
Maximise family support such as Child Benefit, Universal Credit, and tax credits
Ensure your business accounts, tax returns, and claims are accurate, so you don’t miss any opportunities
With JSB Accountants, you gain peace of mind knowing your business and family finances are optimised and compliant, allowing you to focus on growing your business.
Final Thoughts
Being a business owner under the tax threshold doesn’t mean you’re on your own. From family benefits to business reliefs and local grants, there are resources designed to support you and your dependents.
Taking the time to explore these options, plan carefully, and work with a professional accountant like JSB Accountants can help your business thrive while protecting your family’s financial wellbeing.
As a family-run company, we pride ourselves on providing a bespoke service tailored to your particular needs.
Above all, our objective is to save you time, money and effort in managing your accounts, leaving you free to focus on building your business.
Remember, you’re not alone, we’re always here to help if you have an accounts problem or query
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