whats the maximum you can earn for WTC?

snow_queen

hiya

does anyone know what the maximum you can earn for self employed work to get CTC and WTC? And if thats gross or net profit?

Thanks

irs101

It varies from person to person, but here are some general guides - all amounts are approximate (I haven't got the tools with me to do precise calculations) and are for families qualifying for the 30 hour element of WTC, but not for any disability, 50+ or childcare elements. They apply whether you are employed or self-employed. For the self-employed it is effectively the amount you pay income tax on - so gross profit.

Families without children
Single: WTC ends just under £11,000
Couple: WTC ends just over £15,000

Families with children
WTC ends at just over £15,000 (sames as for childless couples)

CTC child elements end at £19,600 for 1 child, £24,000 for 2 children, £28,400 for 3 children, £32,800 for 4 children etc etc.

From that point up to £50,000 you will get the £545 family element only (actually works out at £547.50 to be precise), which then tapers to zero by £58,000.


As I say, the figures will change depending on precise circumstances, as only the £50K is a specified threshold. But the above covers the majority of people getting TCs, so hope this helps.

irs

snow_queen

thanks for this, and do you know when you stop getting MAXIMIM CTC and WTC? At what wage?

irs101

£5,060 - that is a statutory threshold.

For an employee it's actually impossible to get max WTC if you work full-time - otherwise you would be earning less than the National Minimum Wage.

snow_queen

thanks but im not sure what this means?

irs101

Which bit?

£5,060 is called the "first threshold" - the last point at which you get an untapered award. For every £ more than this, you lose 37p.

But if you are employed for 30 hours a week (and thus eligible for the 30 hour element of WTC) you must earn at least £4.85 per hour, which is equivalent to £7,566 a year. So you could never get maximum WTC.

Of course, if you are self-employed you are not affected by the NMW and I'm sure there are people who work full-time but make very little profit - especially if they are setting up a new business.

irs

snow_queen

ok i think I understand, i do pet sitting and its anything between 10 and 20 hours a week! ive £1650 this year until july in a employed job and about £1700 gross not taking out any mileage etc for the pet sitting, im just trying to make sure i'll be ok and get the maximum etc - im a newly single mum so rather confused and daunted by it all xx