PLEASE HELP! Self employed/no work, what am I entitled to?

heathcote123

bestpud wrote: »

Quite right too!

I know someone with a business that has not made money in four years because they are supposedly paying for assets.

This person takes all the cash from the business, but better than that, they somehow offset the tax against the income from their part time paye job.

So, they repay assets (on paper only), take cash from the business and, for tax credit purposes, declare £3k a year less from their paye job than they actually earn!

All they lose is the accountant fee!

It's a crazy situation!!

Certainly is, I don't want to be in competition against mickey mouse businesses that don't have to charge a decent rate because they are in effect being paid by the state out of the corporation tax I pay...

When you start a business, you put your **** on the chopping block.. it's not the states job to prop up failed businesses. (though I appreicate a few bankers may disagree)

Murgatroyd21

Oldernotwiser wrote: »

I can't see how working as a self employed cleaner can be described as "running a business".

I would certainly hope they didn't allow you to claim travelling between jobs as work time either - I would expect someone in this position to be actually cleaning for 20 hours a week to be able to claim tax credits.

The sooner these loopholes are closed the better.

See http://online.businesslink.gov.uk/bdotg/action/hubChassis?itemId=1097101941&type=HUBCHASSIS to understand about the legal basis of a business. You can be a self employed sole trader and classed as running a business.

Under the Working Time Regulations, Job Related Travelling Time is included as normal working hours.

"The HMRC compliance manual states that any hours which will be costed to the client/customer as spent in producing/providing the individual order or service count when working out hours for self-employment. In addition (my highlighting), the following activities also count:

• trips to wholesalers and retailers
• visits to potential clients for giving quotes etc
• time spent on advertising or canvassing business
• cleaning the business premises or space used specifically for business purposes
• cleaning a vehicle used as part of the business, for example a taxi
• travelling for the purposes of the business (yet again my highlighting), but not from home to their business premises" http://www.revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/self-employed/

Hope this helps.

kaya64

it isn't easy being self employed when a recession hits hard like this one, its easy to sit and judge though when everything is rosey in ones life , and if anyone thinks for one moment that sole traders are loaded then they are wrong , there is still the VAT and tax to pay , it does have good times , but when times are good rest assured that we do put back into the system, we just would like a bit of help when times get rough .
It seems that some relish in others misfortunes on here , I am the opposite I love to hear of others doing well and living peacefully :j

Notmyrealname

vixsterviking wrote: »

Hi,
Thanks for your replies. I understand your point/s but I am always looking out for local work and there is none. In the meantime I am putting energy into our business; I cannot just give up.
Until a job turns up or we get a contract for our business can we not claim income support or income based jsa?
Your advice is greatly appreciated.
Kindest Regards,
V.

You can't get IS because of the tax credits. You can't get JSA because you work more than 16hrs a week.

What you are expected to do as a self employed person when there's no work is live off the money you banked to tide you over the quiet times. If you spent all the money of every invoice as it arrived and didn't put any away then thats your problem TBH. I always only took out the minimum I needed which meant that in the 3 months a year there was little work I could continue to pay myself a wage.

Notmyrealname

Oldernotwiser wrote: »

Fortunately tax credits are tightening up to stop this sort of thing. Unless you run a viable business which pays NMW for the required number of hours, people are finding that their tax credits are being withdrawn.

Hardly any business in the first couple of years can do this.

Notmyrealname

Oldernotwiser wrote: »

I can't see how working as a self employed cleaner can be described as "running a business".

Because they are providing goods or services that they charge for. What is your definition of a business because it seems that ccording to your dumbass logic, the only people who are running a business are those with the three letters LTD after them?

I would certainly hope they didn't allow you to claim travelling between jobs as work time either - I would expect someone in this position to be actually cleaning for 20 hours a week to be able to claim tax credits.

You can because it is a business journey.

The sooner these loopholes are closed the better.

What a great idea. They'll pack in and sign on the dole instead which means they get the same money but don't actually need to do anything for it.

You would also have to close the same things for what you class as legitimate businesses as well. They'll recoup the money by upping the prices.

You have a really apt username.

miamoo

I am suprised that you have been able to claim any tax credits as you say that you are working 40hrs a week each yet not earning any money, the HMRC has been coming down hard on this, particularly if you are claiming the extra bonus for working 30+hrs and not actually earning anything. You cant just count 'looking for work' as actually working it has to be something you are actually being paid (or expect to be paid) for.

Edited to add
I'm not having a go by the way, I dont think this has been made clear to anyone who claimed tax credits and alot of people have been caught out.

Emmzi

I'm afraid casual work that you can turn down when business picks up is the way to go. Rock Steady security and events, waiter, that kind of thing. Time to hit the agencies.

Bogof_Babe

miamoo wrote: »

I am suprised that you have been able to claim any tax credits as you say that you are working 40hrs a week each yet not earning any money, the HMRC has been coming down hard on this, particularly if you are claiming the extra bonus for working 30+hrs and not actually earning anything. You cant just count 'looking for work' as actually working it has to be something you are actually being paid (or expect to be paid) for.

Edited to add
I'm not having a go by the way, I dont think this has been made clear to anyone who claimed tax credits and alot of people have been caught out.

This thread is over 12 months old. Things have changed.

lazyman72

kaya64 wrote: »

I think most on here think being self employed as in massive companies earning big money, just because someone is self employed does not mean they are making big money sometimes we I say as i and my husband are self employed choose to go self employed because there is nothing else and at least we make the effort to start a business and risk everything do so , our home for one thing , if you have a mortgage you ge (NIL) help , oh i know you are saying -too right - blah blah blah why should you get help ?
I think self employed should get help with their mortgage repayments in times when they are struggling , but no there is nothing .
I am full of athritis from working out in the rain, snow and freezing weather on outdoor markets , sometimes only to bring in nothing , it wasen't worth it but at least we got up at 5 am , stacked the van and headed to an outdoor market and stood all day long trying to earn a living , at the moment I have taken a cleaning job , because the business has hit hard times once again , i am unwell too at the moment my knee was injured from falling down stairs and I can hardly stand ,but i am cleaing and mopping floors eight hours a day just to bring money in to pay the bills and mortgage which we worked hard for and won't give in easily.
I have to be honest though we have looked into letting the house go and renting a house because on the wages we get we would be £300 per month better off because we would be entitled to claim housing benefit , we also looked into to giving up the business and claiming JCA , but £105.95 isn't enough to pay the bills and the mortgage so what does one do ? the job i have taken is only temporary for six weeks ,but it will pay something and my husband is looking for evening work .
I have said this on another thread , we are not work shy and do try our best to pay our way , but the system seems to be against us .

I totally agree with you over help with people that have mortgages, i struggled for 2 years trying to pay the mortgage when my wife left and had an affair (but thats another story) in the end I gave in and decided to sell the house clear the amounts of debt my ex wife left behind and rent so i could start again and get help. Dont know if it helps but it was the best thing i done, i now manage without any help from the govenment, new partner and new baby of 3.5 weeks old a fresh start and rebuilding my life with my partner and hoping; as still not put off, to look to buy property again (although i doubt i would get married again)