How many working hours per week gives you the best tax credits

AnxiousMum

Owain_Moneysaver wrote: »

Not complying with minimum wage legislation you can't.

£6468 / £5.80 = 1115 hours per year, / 52 = 21.4 hrs per week.

Even if she's self employed? It's her own company - so does the minimum wage come into it?

flashnazia

Owain_Moneysaver wrote: »

Not complying with minimum wage legislation you can't.

£6468 / £5.80 = 1115 hours per year, / 52 = 21.4 hrs per week.

So, she can sue her employer! But wait, she's self employed. . .

NMW doesn't apply to the self employed.

welshmoneylover

Gustav_Schmint wrote: »

Hi

My wife is the director for her own online accessories business. She currently earns a small wage from the business (£6468 per year) but looks after our twin one year old boys full time. She works for the business on an evening in her spare time.

Because of the hours she completes on an evening and weekend you could say she works a 32 hour week.

Our business is struggling and although my wife earns a wage from the business we can't draw the money out as it is needed to cover other expenses. This has left us with financial troubles.

You could be thought of as correct to say she works 0 hours per week as she is doing full time childcare although you could also say she does 16 hours per week and even 32 hours per week.

With regards to tax credits as I am due to fill the form in this week which would it be better to write on the form - 0 hours / 16 hours or 32 hours?

We really need all the support we can get

Thanks in advance
Jon

I have to ask how many hours a week you work to support your family unit?

It might make a difference to your overall tax credit award.

Deepmistrust

AnxiousMum wrote: »

Even if she's self employed? It's her own company - so does the minimum wage come into it?

She's not self-employed, she's employed.

However as a Director she can exempt herself from minimum wage requirements.

PasturesNew

Owain_Moneysaver wrote: »

Not complying with minimum wage legislation you can't.

£6468 / £5.80 = 1115 hours per year, / 52 = 21.4 hrs per week.

Self employed you can work 100 hours and earn £0.01 and it's all OK.

Gustav_Schmint

Thanks everyone for all your replies!

A few clarifications.

I work full time for 37 hours per week.

My wife's business manages to stay afloat with my wife looking after our children because we employ someone to run it day to day. As my wife is the director of the business our accountant advised us to pay her the wage amount I mentioned above. Due to the fact that we employ someone currently to run the business we can't also afford for my wife to draw her wage. Childcare for twins would cost far more than employing our manager even with childcare vouchers.

We are honest people and just want to find out what help we can get in our current situation. Choosing to bring up your children your self seems to come with very little support.

With regards to Mannymans reply

The difference between 16hrs and >30 is just £500 for the year. If you're working as well then if the sum total of the pair of you is over 30hrs, then there is no financial advantage. If you are working 30hrs or more, there is no financial advantage. Is it worth risking being caught out for a tenner a week?

An extra £10 a week would be really helpful actually. That's half of what we spend on nappies.

Thanks

dmg24

If you are honest people, I don't see why you need to ask the question - surely the answer is blatantly obvious?

Deepmistrust

Gustav_Schmint wrote: »

Hi

My wife is the director for her own online accessories business. She currently earns a small wage from the business (£6468 per year) but looks after our twin one year old boys full time. She works for the business on an evening in her spare time.

Because of the hours she completes on an evening and weekend you could say she works a 32 hour week.

Our business is struggling and although my wife earns a wage from the business we can't draw the money out as it is needed to cover other expenses. This has left us with financial troubles.

You could be thought of as correct to say she works 0 hours per week as she is doing full time childcare although you could also say she does 16 hours per week and even 32 hours per week.

With regards to tax credits as I am due to fill the form in this week which would it be better to write on the form - 0 hours / 16 hours or 32 hours?

We really need all the support we can get

Thanks in advance
Jon

In addition to the hours worked on the business, she is allowed to consider her hours spent on other aspects of the business, such as her bookkeeping etc.

As for "what is more beneficial". I obviously more hours is beneficial. Not purely from TC point of view, but obviously because she should hopefully be generating more business if she works more hours on it, which should equate to more profit.

HMRC aren't gullible though. If she suddenly ups her hours by an additional 20, and her wage remains the same, and her profit and workload do not change, then they may ask for evidence from her business.

sulkisu

Gustav_Schmint wrote: »

Choosing to bring up your children your self seems to come with very little support.

Should parents expect to be rewarded or propped up by the State, just because they are doing what they are supposed to do - i.e. raising the children that they chose to have?