a friend says her tax credits are saying that

Deals_2

because she is showing a loss in her self employment she is not entitled to help with childcare and working tax credits. does not sound right. she is running her business but has incurred costs etc to get it up and running and has had some setbacks but i dont see why she should not be entitled to any help with her childcare etc. could someone clarify this? i think it is just an admin person who just does not understand running your own business. any help appreciated. thanks

MrsManda

Is she working at least 16 hours a week for payment or profit?

Deals_2

together but he has made a loss but gets paid just gets put back into business + bills.

MrsManda wrote: »

Is she working at least 16 hours a week for payment or profit?

BoGoF

HMRC are going to target the 'bogus' self employed who claim tax credits. By that I mean those who register as s/e just for the sole purpose of claiming tax credits but do not actually conduct a business or deliberately have no intention of trying to make a profit.

Your 2nd post makes no sense to me I'm afraid !!

leveller2911

When people start their own business and begin self employment they set their income rate.They decide on how much to charge for a product or service.

I can't understand why people expect the tax payers to subsidise their business set up by way of tax credits.If you can't afford to set up/run a business then get a business loan like most people do and if it doesn't work out get an employed job.

@BoGoF ,I hope your right .....

Deals_2

these comments are very negative. they are doing a second one now. what is the big deal. they have debts they are owing back. not like the owner of top shop who went ltd then owed everyone half a million which not sure if he actually paid them back!!! i worry that this is all very negative feedback instead of being helpful for people who are struggling like anyone else! maybe you shoudl admired them rather than condemn them to keep trying and not give up.sounds like there are some very frustrated people here. if you would like to run your own business why dont you also do things and see how easy/difficult it can be at times!!!!

leveller2911 wrote: »

When people start their own business and begin self employment they set their income rate.They decide on how much to charge for a product or service.

I can't understand why people expect the tax payers to subsidise their business set up by way of tax credits.If you can't afford to set up/run a business then get a business loan like most people do and if it doesn't work out get an employed job.

@BoGoF ,I hope your right .....

BoGoF

You're posts are very confusing by starting the reply in the heading.

If your friend is running a legitimate business then her credits will not be getting stopped so something seems wrong with this scenario

HappyMJ

BoGoF wrote: »

HMRC are going to target the 'bogus' self employed who claim tax credits. By that I mean those who register as s/e just for the sole purpose of claiming tax credits but do not actually conduct a business or deliberately have no intention of trying to make a profit.

Your 2nd post makes no sense to me I'm afraid !!

Do you have a source for that? That concerns me. That's what I do and I have no intention of ever making a decent profit. I make enough as it is and simply have no desire to make any more than I do now.

MrsManda

Whether they have debts or not is irrelevant.
In order to get tax credits a person needs to be in paid work for at least 16 hours a week if they have children.
If the person is self-employed, paid work is classed as

'any work you do for payment (or would expect to be paid) or profit'

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/TaxCreditsandChildBenefit/TaxCredits/Gettingstarted/whoqualifies/WorkingTaxCreditthebasics/DG_172728

How to work out usual working hours:

If you're self-employed
Put down the number of hours you normally spend working in your business, either on work billed to the client or its related activity, for example:

• trips to wholesalers and retailers
• visits to potential clients
• time spent on advertising
• cleaning the business premises
• cleaning a vehicle used as part of the business, for example a taxi
• bookkeeping
• research work

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/TaxCreditsandChildBenefit/TaxCredits/Gettingstarted/Claimingtaxcredits/workoutincomeandworkinghours/DG_174173

leveller2911

Deals wrote: »

these comments are very negative. they are doing a second one now. what is the big deal. they have debts they are owing back. not like the owner of top shop who went ltd then owed everyone half a million which not sure if he actually paid them back!!! i worry that this is all very negative feedback instead of being helpful for people who are struggling like anyone else!

As someone who has been self employed for over 25 years I can say from experience that its very easy to show the business is making a loss when in fact it is making money.I also know a few people who have jumped on the bandwagon of starting their own businesses like Avon and e-bay , they are just a smoke screen and its so transparent.Personally I would prefer to be honest and be able to sleep at night.

We are not discussing Top Shop though, are we.This is the typical Lefty Socialist defence,they always blame the rich for the problems of the poor. I think the Banks have a lot to answer for but thats for another thread.

Yes I know people are struggling, lifes got harder for most of us but I stand by my comments , the tax paying public should not be subsidising business start ups by way of tax credits and lets be clear on this at present part time aside the less you earn the more tax credits your entitled too ... The whole system need changing from the roots up.

I don't see that my comments are negaitive, if someone has the drive to be self employed they will succeed and good luck to anyone who does it the right way.

System

TCO are currently targeting some self-employed claimants and asking them to provide proof of their income and expenses, how they obtain their clients, what advertising they do, mileage logs, diaries showing their appointments etc. Just the same sort of information the tax office might expect them to provide if/when their tax returns are pulled for an enquiry.

Similarly they have stopped taking at face value a claimants childcare costs. They are checking with the childcare provider before any change is made. The childcare provider has to be honest in what they say because then their self-employment tax returns can also be investigated by the tax office.