self employed - weekly figures not good

raq

Hi all

WFTC and tax credit have a figure of £13,500.00 for 2008/2009 as self employed for hubby. We have 3 kiddies all under 8 and i am currently not working (not claiming anything though ). Basically what with the credit crunch ( hate that word ) my husband income has dropped in a huge way. We are getting by , just, and making sure our bills are paid. WFTC are paying us on an income of £13,500.00. My husband figure for the past year has only been £4,500.00. Say by April of next year it is only £7,000.00 how will WFTC calculate this. ?? This is a huge difference plus what will 2009/2010 figure be based on.

thanks guys and keep up the good work

krisskross

This is just a query but something that puzzles me. Why do people stay self-employed when they cannot make enough money to support themselves? Why don't they get a job where at least you would get holiday and sick pay even if the actual salary is not much better.

raq

He actually was working for a big company for 9 years, 18 months ago redudant, no surprise. Always had a trade and decided to go out there and have a go. Nothing wrong with that.

krisskross

raq wrote: »

He actually was working for a big company for 9 years, 18 months ago redudant, no surprise. Always had a trade and decided to go out there and have a go. Nothing wrong with that.

No nothing wrong at all. As I said I just wondered.

raq

krisskross wrote: »

No nothing wrong at all. As I said I just wondered.

No problem.

hopefully fingers crossed we can stick to it as it works out extremely well with myself and the children.

[Deleted User]

If his earnings for last year were £4500 you will be currently receiving the maximum award of WTW & CTC. The figure of £13,000 would not affect your award until 6th April 2009.

From this date your provisional award would be based on the £13,000 - unless you tell them it is going to be closer to £7,000 so that they can work it out on this amount.

You are paid on a provisional award until your annual renewal is completed. When you complete the renewal they will calculate your award based on exact figures.

If you have been underpaid you will receive the difference back. However if you have underestimated your income your payments will reduce to pay back any overpayment.

Conor_3

krisskross wrote: »

This is just a query but something that puzzles me. Why do people stay self-employed when they cannot make enough money to support themselves?

Going on that, most of the businesses in the world should shut up shop this year. :rolleyes:

You stay self employed because the nature of all business means that you have good times and lean times. You don't just pack up when the times are hard because you'll lose any business you did have and you'd have to start up from scratch again.

Also in the first year, new startups aren't expected to make a profit at all. If everyone took your view, nobody would ever start a business.

envelopes

Hello - fingers crossed that your husband makes a go of his business.

My husband has a very successful business and then due to a major company monopolising a lot of people the amount of work coming in dropped right down - combined with a house move and now the current climate work has almost dried up - it is a struggle I know.

One of my businesses is very new and it takes a few years to establish any business and I often think like the person above that it would be better to go and get a paid job with holidays etc and there'd be more money but sometimes you have to work harder and give it a chance - I often think that my husband should go get a job now but we don't mention that :-)

Anyway the comment i was going to make was - is there not an upper limit for the tax credits and would their pay out be any higher with a declared salary of 7K than it is at 13K ?? So, are you not already claiming the full amount of tax credit at the £13k earnings mark?

raq

Conor wrote: »

Going on that, most of the businesses in the world should shut up shop this year. :rolleyes:

You stay self employed because the nature of all business means that you have good times and lean times. You don't just pack up when the times are hard because you'll lose any business you did have and you'd have to start up from scratch again.

Also in the first year, new startups aren't expected to make a profit at all. If everyone took your view, nobody would ever start a business.

thanks for this post. very true

raq

envelopes wrote: »

Hello - fingers crossed that your husband makes a go of his business.

My husband has a very successful business and then due to a major company monopolising a lot of people the amount of work coming in dropped right down - combined with a house move and now the current climate work has almost dried up - it is a struggle I know.

One of my businesses is very new and it takes a few years to establish any business and I often think like the person above that it would be better to go and get a paid job with holidays etc and there'd be more money but sometimes you have to work harder and give it a chance - I often think that my husband should go get a job now but we don't mention that :-)

Anyway the comment i was going to make was - is there not an upper limit for the tax credits and would their pay out be any higher with a declared salary of 7K than it is at 13K ?? So, are you not already claiming the full amount of tax credit at the £13k earnings mark?

to be honest with you am unsure. They got £13,500.00 on their records and we have £200.00 per week. We have 3 kiddies as stated. No benefits or rent paid. morgaged house

Lifeisbutadream

krisskross wrote: »

This is just a query but something that puzzles me. Why do people stay self-employed when they cannot make enough money to support themselves? Why don't they get a job where at least you would get holiday and sick pay even if the actual salary is not much better.

Sometimes you have to speculate to accumulate.

I run a business with my DH - the first year we made a loss, the second year we made a tiny profit and the third year we made a little bit larger profit.

With the credit crunch upon us, I expect that we will slow down and make less profit than we have forecast in our 4th year, but if we were to walk away then we would have wasted the last 3 years. Ours is not the sort of business where when work dries up you are just sat around, we are still working loads of hours, just making a lot less money!

Obviously if we werent making enough to live on one of us would have to work 'elsewhere' as well though.