Working Tax Credit Question

sorcerer

Hi

A hope somebody can help.

A friend has been claiming Working Tax Credit and works self employed, however the self employed work is only for one company, who she has been told will close for five weeks, over the Christmas period. Do you know if my friend will need to tell the benefits people about this, and does anybody know how they would deal with such a thing. Since she hopes to be back at the work in five weeks time.

Thanks for your help.

[Deleted User]

She can be out of work for 4 weeks without needing to notify TCO - could she not spend a week doing something else self employed?

Could she not spend the additional week doing additional work? Paperwork, cleaning premises, seeking new clients etc all still counts as working hours.

Conor_3

In addition to that, she'll be on holiday anyway which is counted as working. You're entitled as employed to just short of 5 weeks off.

sorcerer

Conor wrote: »

In addition to that, she'll be on holiday anyway which is counted as working. You're entitled as employed to just short of 5 weeks off.

Ok cool thanks, does that go for self employed people? (in that they are entitled to 5 weeks off).

sorcerer

subsoniccoyote wrote: »

She can be out of work for 4 weeks without needing to notify TCO - could she not spend a week doing something else self employed?

Could she not spend the additional week doing additional work? Paperwork, cleaning premises, seeking new clients etc all still counts as working hours.

So they wouldn't be too bothered if the place she works for, closes down for 4 or 5 week?

[Deleted User]

She can only have a continous period of 4 weeks unpaid off work regardless of what entitlement to annual leave a PAYE employee would have.

The PAYE employee is still in paid employment during their paid leave but the S/E person, I would assume, s on unpaid leave which is not clased as working.

Whether employed as PAYE or self employed, you are allowed this period of 4 weeks unpaid leave.

sorcerer

subsoniccoyote wrote: »

She can only have a continous period of 4 weeks unpaid off work regardless of what entitlement to annual leave a PAYE employee would have.

The PAYE employee is still in paid employment during their paid leave but the S/E person, I would assume, s on unpaid leave which is not clased as working.

Whether employed as PAYE or self employed, you are allowed this period of 4 weeks unpaid leave.

Oh OK I understand, so do you think it's best that she let's the Benefits people know about the situation and they can work out the rest?

Icequeen1

subsoniccoyote wrote: »

She can only have a continous period of 4 weeks unpaid off work regardless of what entitlement to annual leave a PAYE employee would have.

The PAYE employee is still in paid employment during their paid leave but the S/E person, I would assume, s on unpaid leave which is not clased as working.

Whether employed as PAYE or self employed, you are allowed this period of 4 weeks unpaid leave.

Also, from what you have said it sounds like the person may not be self employed at all see the HMRC checklist here: http://www.hmrc.gov.uk/working/work-out-emp-self-emp.htm

The only other suggestion is that she does other work relating to her self employment as suggested by subsoniccoyote, which she can do if she is really self employed, but the lack of any of that to do and the dependency on the employer suggests (see the link) that she should be an employee.

IQ