working tax credits changes for self employed from 6th April 2016

[swiss90]

Re: working tax credits changes for self employed from 6th April 2016

Hi I got the same letter. I am a single dad bringing up a 11 year old on my own. I went self employed 3 years ago but not making the min wage I am in profit each month but only by a few hundred pounds each month. I have not been able to sleep for weeks. I got my letter in between Christmas and New years eve. I had a bad Christmas I can tell you. I don't understand if you try in this country and work you get kicked in the teeth for doing just that. I feel like giving up saying to the government ok you win I will go back on the doll. I would like to know if anybody hears anything.

The letter says you can not get WT if you don't make a profit..... I DO but not much

But then the government says all self employed people must earn a base level of min wage to get working tax........I give up

[Spent2much]

Re: working tax credits changes for self employed from 6th April 2016

Hi I got the same letter. I am a single dad bringing up a 11 year old on my own. I went self employed 3 years ago but not making the min wage I am in profit each month but only by a few hundred pounds each month. I have not been able to sleep for weeks. I got my letter in between Christmas and New years eve. I had a bad Christmas I can tell you. I don't understand if you try in this country and work you get kicked in the teeth for doing just that. I feel like giving up saying to the government ok you win I will go back on the doll. I would like to know if anybody hears anything.

The letter says you can not get WT if you don't make a profit..... I DO but not much

But then the government says all self employed people must earn a base level of min wage to get working tax........I give up

Yes our Christmas was terrible the business made a loss and we had to open everyday from the 12 th December with extra rent to pay , basically my husband opened up just to stand there to pay rent with no profit , it makes me sick . The thing that makes no sense is that by putting these demands on sole traders will put them on the dole and it will cost the government more in support for mortgage interest dole money as apposed to receiving wtc , yep we're worried too .

[SXGuy]

Re: working tax credits changes for self employed from 6th April 2016

I still think you have misunderstood the criteria. But I'm welcome to being convinced otherwise. The way I see it a minimum of earning a minimum wage means you'd be awarded the maximum level of wtc. Then it would go down the more you earn, up to the point you earn to much to claim. So a loss would be the equivalent to earning minimum wage. I.e full award. But as I say. Feel free to show me a counter argument.

[Spent2much]

Re: working tax credits changes for self employed from 6th April 2016

I still think you have misunderstood the criteria. But I'm welcome to being convinced otherwise. The way I see it a minimum of earning a minimum wage means you'd be awarded the maximum level of wtc. Then it would go down the more you earn, up to the point you earn to much to claim. So a loss would be the equivalent to earning minimum wage. I.e full award. But as I say. Feel free to show me a counter argument.

I hope so , because Christmas was a loss for us and the rest of the year we just scraped by , I think we will have to wait and see what happens fingers crossed you're right SXGuy

[swiss90]

Re: working tax credits changes for self employed from 6th April 2016

Hi No the letter says you have to be making a profit or aim to make a profit. if you are below the working tax threshold then they want to see your books bank statements etc to see if it is a business worth keeping. If not you will be refused working Tax

[SXGuy]

Re: working tax credits changes for self employed from 6th April 2016

Hi. Please see my other post which already explains this. That part of the statement refers to people who may be refused job seekers and start up a business in order to claim working tax credits. So long as you can prove you are a real business with a potential to earn a profit it should be fine. It does not mean if you make a loss you won't be entitled.

[swiss90]

Re: working tax credits changes for self employed from 6th April 2016

Hi I spoke to HMRC and what you are saying is incorrect What HMRC are saying is if you are making Min wage they will not contact you. but if you are under the min wage threshold the new department which I run by business consultants if they find that it is not a worth while company and can not or will not bring in min wage in a shot term you could lose your working tax. I only make £200-£300 profit each month and they have said may not be able to claim WT being self employed with the new rules in April

[Spent2much]

Re: working tax credits changes for self employed from 6th April 2016

Thats us out then cos Christmas was a loss and its not much better now , oh well time to put the house up for sale and go live in a tent cos thats all we will be able to afford as we would not be able to afford to stay here .

and no good renting as rents are as expensive as mortgages, and if hubby is forced to close the business its going to cost the government more in benefits , what a nice start to the new year . No wonder i am full of anxiety and panic , my counselor has had to pass me to another colleague as my case is too complex with being ill from aged 5 ,

[Pixie]

Re: working tax credits changes for self employed from 6th April 2016

Could you move to a smaller house S2M?

[Spent2much]

Re: working tax credits changes for self employed from 6th April 2016

Could you move to a smaller house S2M?

would love to but after paying back mortgage we would only have about 30 thousand to buy another one and that won't buy a house .
I think if we lose wtc hubby will have to close the business and sign on then we would get some help with the mortgage , but even that isn't guaranteed .

[Spent2much]

Re: working tax credits changes for self employed from 6th April 2016

If our holiday to Rhodes wasn't paid for i wouldn't go but no point in cancelling that just to give it to someone else . what a mess this is and im useless cos too scared to go out by myself

[swiss90]

Re: working tax credits changes for self employed from 6th April 2016

S2M hi how long have you had your business for?? How long have you not been making a profit is it just over Christmas. is it just your husband that is self employed is there no other income coming in?

[Spent2much]

Re: working tax credits changes for self employed from 6th April 2016

S2M hi how long have you had your business for?? How long have you not been making a profit is it just over Christmas. is it just your husband that is self employed is there no other income coming in?

Hi, a few years now not making much profit , we have managed to get by with the help of wtc, the business has been running since 2005 , it was really good back then , it all changed in 2007 and went down hill, we don't have any other income, i suffer severe anxiety and have agoraphobia and receiving therapy for it , been told it will take months because of my problems which go back to when i was a little girl.

[swiss90]

Re: working tax credits changes for self employed from 6th April 2016

Are you saying you have not made a profit in 9 years with your business? I am only making 200-300 per month profit so I know I will have to go back on benefits. It is wrong as I am a single father looking after a 11 year old girl. so they will take away £95 per week working tax and the profit I make at the moment say £50 per week which comes to £145.00 I will lose once they kick me off self employed . I did for the past two years not make any profit but this year I know I will make a profit but not what the government wants me to make. so looks like back on the doll until my daughter is old enough to look after herself . looks I better get buying some boxset to keep me busy lol

[Spent2much]

Re: working tax credits changes for self employed from 6th April 2016

oh no its only the past few years that we have been really struggling, i would say the business makes around 50 quid a week profit which i crap compared to what it used to make, and that was a hell of a lot more but the past few years have been crap .