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Changes To Wtc For Self Employed From April 6Th 2015

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So until now, my wife could have said "I make fairy cakes and bunting 20 hrs a week, but only earn £50 profit a week"..... and would not have had to evidence it? FFS.

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Claimants may lose their WTC if they cannot provide the evidence we ask for and may have to repay any tax credits they are not entitled to.

That will be interesting! :D

Edited by RentierParadisio

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That's outrageous!

I did not move all the way from Nigeria with 6 kids and setup a nail bar in Soho to pay tax!

Who'll pay my 2k/month rent now?

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So until now, my wife could have said "I make fairy cakes and bunting 20 hrs a week, but only earn £50 profit a week"..... and would not have had to evidence it? FFS.

Ahh, you'll be thinking of the useless sh1ts down my roand - one internet card designer and another perma-culture consultant.

Google both an 'tax credits'.

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how much is the wtc ? it only looks like a few hundred every year anyway ?

No idea, but its dependent on 'hours worked' lol

Was used by JCP+ to get jobseekers off the dole (I wonder why) so would think its around JSA levels. Couple of hundred a month I'd have thought

Edited by RentierParadisio

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No idea, but its dependent on 'hours worked' lol

Was used by JCP+ to get jobseekers off the dole (I wonder why) so would think its around JSA levels. Couple of hundred a month I'd have thought

WTC and the like is a 'gateway' benefit.

Have a couple of kids, chuck some made up disabilities in and - kerching$$$$$$!!!!

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WTC and the like is a 'gateway' benefit.

Have a couple of kids, chuck some made up disabilities in and - kerching$$$$$$!!!!

anyone got a wife,kids and some made up disabilities i can borrow ?

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http://www.ion.icaew.com/TaxFaculty/post/Working-tax-credit-and-the-self-employed

The original plan, announced in the Autumn Statement 2014, was that a self-employed claimant would have to have registered with HMRC as self-employed and would have needed to provide their unique taxpayer reference number with their tax credits claim, but that is now postponed until next year.

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Based on hours worked & self-employment is a very bad mix. How on earth do the government know how many hours a self-employed person has worked? Clock cards? Seems like the easiest benefit in the world to claim based on casual lies.

I did not move all the way from Nigeria with 6 kids and setup a nail bar in Soho to pay tax!

:D

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anyone got a wife,kids and some made up disabilities i can borrow ?

Oh, check on the Nigerian and Polish web sites.

There'll be someone hiring them out.

That is not a joke!

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Ahh, you'll be thinking of the useless sh1ts down my roand - one internet card designer and another perma-culture consultant.

Google both an 'tax credits'

I just googled perma culture consultant.

I really dont know what to say, you hire someone to tell you where to put compost and a water butt? Someone whose entire services can be replaced by reading a couple of webpages? or am I missing something?

Internet card designer, I am not sure if this is an app or a person? I do know you can do this for free on about a million websites.

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Working tax credit is paid to people on low wages.

However, if you don't fancy actually working in a supermarket or warehouse for minimum wage, you can pretend to be self employed.

The government will give you working tax credits without having to actually work.

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In fact HMRC/Concentric check some people claiming to be self-employed asking for proof of income and ending WTC / asking for sums to be repaid if their self-employment isn't viable. Have been doing since at least 2012. What proportion, I don't know.

Evidence: Rightsnet / MSE / Netmums / Mumsnet forums.

But then you have Jobcentres persuading people to go self-employed to get them off the dole figures, like the bloke on the TV programme who'd earned £350 in a year from his photography "business".

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I've been self employed for the last 2 years, surviving mostly on tax credits since it's a startup and my revenues haven't yet matched my expenses. The rules have always been this way. There's other rules too, relating to what kind of work counts as "remunerative", so for example, you can't spend your time developing software... you have to be trying to sell, find customers / clients develop new business etc.

It makes for lots of grey areas too. How much time is spent selling? Where is the line between developing ideas to pitch to a particular client you're engaged with, and product development generally? Does fund-raising fall under general business administration?

No comment on the rights and wrongs of it, but I agree it will probably cause some turmoil... ( or it could inspire a drive for new business? )

Edited by ManVsRecession

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Well I did the self employment thing in the eighties, will try again in a few weeks time.

Anyone got any good ideas?

Suppose I could push a mower around.

The Enterpise Allowance, or what it was called, was/is nothing compared to the lottery-like tax credits.

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how much is the wtc ? it only looks like a few hundred every year anyway ?

Haha, no.

It's £1960 for a single person or £3970 for a parent (single or couple), and there's a £810 bonus for working 30+hours per week. If you have a child then you need to work 16 hours per week (24 hours between a couple, with one doing 16+ hours, e.g., 24/0, 16/10, etc.), if not then 30 hours per week.

There's also typically child tax credits on top of that, £3325 for one child, plus £2780 per extra child, with a further £3140 if the child is disabled.

The trick with tax credits is that they aren't means tested, so if you are a trustafarian type with £500k in the bank and living in a £3m house in Fulham, you still get the same tax credits as someone with nothing (they will count your income from the interest, which on £500k would only be £5k at present rates, but it's only taxable income - untaxed income isn't counted)

There are huge numbers of people just turning up at work for the required minimum hours in some menial job, and then the government doubles their pay.

Working Tax Credits are the gateway benefit for all those things they used to give people 'on the dole'. So you get discounted leisure centre membership, theatre tickets and so on.

If you are loaded, then bear in mind that you won't get most of the other benefits - Housing Benefit, Income Support, etc. all require you to have spent your savings on fags and flat screen tellies. Tax credits were the exception to this, because Labour came up with them and they wanted to basically make the entire population dependent on welfare.

Edited by bambam

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Tax credits were the exception to this, because Labour came up with them and they wanted to basically make the entire population dependent on welfare.

...and equally, screw over anyone without children doing the exact same work.

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Because, of course, the outgoings of the childless are exactly the same as those of parents.

No but tax credits are circa £55 per week per child. Top that up with child benefit (£20 for first child or £13-ish for subsequent), you get approx £70 per child per week. No child costs that much. The government could reduce CTC to £30 and it would still be sufficient imo (mother of kids, not claiming CTC). It's just helping families to stay in London who can't really afford it.

Edited by fru-gal

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Haha, no.

It's £1960 for a single person or £3970 for a parent (single or couple), and there's a £810 bonus for working 30+hours per week. If you have a child then you need to work 16 hours per week (24 hours between a couple, with one doing 16+ hours, e.g., 24/0, 16/10, etc.), if not then 30 hours per week.

There's also typically child tax credits on top of that, £3325 for one child, plus £2780 per extra child, with a further £3140 if the child is disabled.

The trick with tax credits is that they aren't means tested, so if you are a trustafarian type with £500k in the bank and living in a £3m house in Fulham, you still get the same tax credits as someone with nothing (they will count your income from the interest, which on £500k would only be £5k at present rates, but it's only taxable income - untaxed income isn't counted)

There are huge numbers of people just turning up at work for the required minimum hours in some menial job, and then the government doubles their pay.

Working Tax Credits are the gateway benefit for all those things they used to give people 'on the dole'. So you get discounted leisure centre membership, theatre tickets and so on.

If you are loaded, then bear in mind that you won't get most of the other benefits - Housing Benefit, Income Support, etc. all require you to have spent your savings on fags and flat screen tellies. Tax credits were the exception to this, because Labour came up with them and they wanted to basically make the entire population dependent on welfare.

This is changing with Universal Credit.

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...and equally, screw over anyone without children doing the exact same work.

That's not necessarily a bad thing, if you want people to have more kids.

The issue is that it's a subsidy to low-paid work (if you earn £7/hour, tax credits can double your wages, on £70/hour you get nothing), so it promotes an economy based on low-paid work and immigrants.

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