Tax credits and CTB queries

Chuggspozzle

Hi guys, sorry my first post is a question, have read the site for ages for the budget and cookery tips, but never posted on a forum before, so hope I'm going about it the right way.

I am self employed but, due I feel to the recession, business isn't as good as it was. I don't want to give the business up as I firmly believe it will come back ok so want to soldier on for a while.

I am looking for a job either full or part time to supplement my income, but not having any joy at the moment. I live in a coastal area and work is massively seasonal and most jobs are snapped up by now, often by school/college youngsters because the bosses can pay them less for the same job. I did cleaning and waitressing last year, so will take anything!

I believe on my earnings from last year that I may be entitled to a little working tax credit. I have sent the form off and will see what they say.

I also believe I may be entitled to a small amount of ctb, have got the form from the council, but am having difficulty filling it in. I will persevere though.

One of my worries with the ctb one is that a lot of purchases for my business are from jumble and car boot sales, maybe as much as 80% of them. HMRC are happy, well maybe not happy but the understand. I can't ask people for receipts as they don't like selling to traders on car boots, and often put the prices up if they think they are. It's only clothing, but the sellers still don't like it.

Does anyone have any idea whether the council will accept this? HMRC have done for over 10 years now.

The other route I thought of going down was maybe taking in a lodger on the rent a room scheme. I know that would probably wipe out any ctb I was entitled to and that's fine, but wondered how it worked with tax credits? Does it count as earnings because it's tax free?

Thank you so much in advance for any replies.

Chuggs.

Hammyman

The council don't generally ask for receipts, merely an income/expenses statement.

froo_gal

Hiya Chuggs,

As Hammyman says, the CTB people don't ask for receipts, just your income /expense statement.

Also income from the rent a room does not count as income for tax credits:


'The £300 limit is between you if you are claiming as a couple. You don't have to declare income or interest from tax-free savings such as an Isa (either cash Isa or stocks and shares Isa) or any rent you receive through the rent-a-room scheme.'

http://www.which.co.uk/advice/tax-credits/what-counts-as-income-for-tax-credits-purposes/index.jsp

Chuggspozzle

Thank you so much for your replies.

Think I'm going to have a long hard look at taking in a lodger. Pros and cons obviously, but if no other job comes up think it's probably the best way forwards and saves having to go the ctb route, which I don't want to do if it's at all possible to avoid.