Tax credits for the self employed?

GlasweJen

Both my parents are self employed taxi drivers and live at home with my little sister who is 17 but not in education.

Due to the "credit crunch" and the high cost of everything they are struggling to make ends meet and it's coming to crunch time where they are struggling to finance the house and stuff.

I told them that as they work over 30 hours they may be able to claim tax credits but my dad is scared that this will involve a probe into my parents assets rather than just on last years income. Now don't get me wrong they don't have much assets, both cars are taxis and necessary for work and the house is mortgaged and is an ex-council house in a reasonably nice area but dad is weird with money having just got them up from really bad times in the past.

Last year they earned about £30,000 between them after all their allowable deductions, this was signed off by a chartered accountant and they have accounts going back for years with the same guy. Should I tell them to claim tax credits?

hotblu

Hello GlasweJen,

Unfortunately your parents wouldn't be entitled to WTC on that level of hh income. For a couple without any qualifying children their income needs to be around £15k (jointly) or lower.

HTH

Hotblu

cw18

My understanding (based on a mess around I had last tax year that's continued into this one) is that unless your sister is in approved education or registered with Connexions, then they can't claim CTC for her either.

GlasweJen

thank you. Who on earth has a joint income of less than £15k with full time work?

Conor_3

GlasweJen wrote: »

thank you. Who on earth has a joint income of less than £15k with full time work?

A couple who are self employed.

It's not joint income, it's total income but with at least one person working 30 hours or more so you can have one working fulltime with the other working part time, one working fulltime and the other not or both self employed fulltime but not making over £15k between them.

[Deleted User]

GlasweJen wrote: »

thank you. Who on earth has a joint income of less than £15k with full time work?

those where only one partner works:j

DreamerV

If they estimate their joint net profit for this current tax year is going to be a lot lower, it's worth them putting in a claim (for wtc only). But it would have to be well under £20,000 for current yr unless either of them are disabled.