Working tax credits and no income

Garry2009

I've lost my contract to a client I was doing work for which means i receive no income from employment. I am however working over 16 hours (I'm also on disability) on a a software program I've been developing for many months which I plan to market through my business. I'm wondering will I still be entitled to Working Tax credit?

I'd like to get an opinion before I ring them up to tell them my change of circumstances as I'm terrible on the phone and I'd rather continue receiving WTC whilst I find another job than than go back on the dreaded JSA system.

dmg24

Are you seeking another job or are you working on your software program?

Garry2009

dmg24 wrote: »

Are you seeking another job or are you working on your software program?

I'm actually doing both but if I found a new job that would take priority over my software program. Do I still qualify for WTC in which case?

Garry2009

bump :j:j:j:j:j:j

toonbaz

if you still class yourself as self employed and are putting hrs into the business then yes you can still claim working tax credits. doesnt matter if you are seeking work or not, as long as you are putting time into your business and that time is over 16 hrs then you are eligible to continue to claim.

Garry2009

toonbaz wrote: »

if you still class yourself as self employed and are putting hrs into the business then yes you can still claim working tax credits. doesnt matter if you are seeking work or not, as long as you are putting time into your business and that time is over 16 hrs then you are eligible to continue to claim.

Thanks toonbaz, that's what I was hoping to hear . Are you 100% certain about this though because when I stopped claiming JSA last time the advisor told me that I should hang on to my payment slips in case i needed to show proof that I'm working. I'll give the tax credit people a ring tomorrow anyway to tell them my change of circumstances.

toonbaz

as long as you are registered self employed for tax purposes you should be fine, they will need to know your UTR number. essentially you are doing work that will generate income for your business in the future, as an example someone could set up a new business and have no customers and no income but if they spend 20 hrs a week posting leaflets to try and drum up some business then they can claim wtc as they are putting time into their business.
you would be amazed how many people claim working tax credits with a nil income from self employment, its understandable that people newly self employed will have increased costs and will take time to build up business.

Garry2009

Hmm, I' not so sure if it's possible now as this official page says you must be getting paid for the work that you do: http://taxcredits.hmrc.gov.uk/Qualify/WhatAreTaxCredits.aspx

Oh well, back to the dole queue it is then

dktreesea

toonbaz wrote: »

as long as you are registered self employed for tax purposes you should be fine, they will need to know your UTR number. essentially you are doing work that will generate income for your business in the future, as an example someone could set up a new business and have no customers and no income but if they spend 20 hrs a week posting leaflets to try and drum up some business then they can claim wtc as they are putting time into their business.
you would be amazed how many people claim working tax credits with a nil income from self employment, its understandable that people newly self employed will have increased costs and will take time to build up business.

Being registered for self employment, but without any revenue, may not be sufficient. You also need to have revenue, even if you are making a loss. Doing product development without any income, as I understand it when we first set up our business, and from what the HMRC told me at the time, doesn't qualify you for working tax credit.

People who claim working tax credit with zero income are usually people who are making a loss. So it isn't that they don't have revenue - they do - but they don't make a profit. Losses, again as I understand it, can be carried forward for income tax purposes but not for working tax and benefit purposes. Hence the zeroing of all loss making positions to nil (net) income on documents like CTC/WTC documents from HMRC and housing benefit documents from the council.