Tax Credit questions....

badger12

Hi All,

Hope you can answer some questions for me.

I am classed as self employed. I am a collections agent so work on commission. I am single with no children.

Do TC's get calculated on what you earn, or whats left after expenses? Last year I paid no tax.

My commission fluctuates each week - how does that work for TC's

Reason am asking is that although I do the same route, people are paying less and less towards their accounts and I've noticed a dramatic drop in income and am getting a tad worried. Petrol is going up along with other expenses... Ower.

Thanks in advance.

Numptytoes

My husband is self-employed, we tell Tax Credits all the money he has earnt (so before tax), basically all the money he receives. Does that make sense? We have to estimate what he might earn in the year which is very difficult to do!

Murgatroyd21

If you are self employed you declare the amount of net profit, i.e. the amount you make as profit after deducting allowable expenses.

joanne_d_3

Numptytoes wrote: »

My husband is self-employed, we tell Tax Credits all the money he has earnt (so before tax), basically all the money he receives. Does that make sense? We have to estimate what he might earn in the year which is very difficult to do!

Surely that means that you are giving tax credits too high a figure ?

Total earnings MINUS allowable expenses = profit...it is this PROFIT figure which you give to tax credits when you are self employed .

I would sort this out soon as you will be loosing money from tc's if this is indeed the figure you are giving !