Working Tax Credits - False overpayment

Oldernotwiser

tamiami wrote: »

I'm self employed on commission only. Some weeks I work 40 hours and earn practically nothing, other weeks I can earn £200. I think what my actual earnings are for the year should be used, if they used the NMW it would give a false higher figure and I would lose my tax credits - where's the fairness in that?

Surely you wouldn't work for 40 hours a week for practically nothing if you didn't get tax credits?

tamiami

I work from home for a travel company. I used to have a salary but the call centre closed down and made everyone redundant. Then they changed all their agents to commission only. I have a child so would only be able to work part time, or would have to pay for child care, so working from home suits me and as long as I get my £400 to £500 per month I don't mind how many hours I work.

RyDG

Hello,

Sorry for the delay, there's been a lot of questions that I've missed.

Unfortunately I haven't had any wages for the last two years. Absolutely nothing. I started my business straight out of Uni, having been broke for the last four years, and carried on in that vein.

I've lived with the help of housing benefit, the tax credits and selling my possessions, and only two years on, have started taking a wage.

I'd like to say that the business is earning enough and I'm not just 'subsiding' it with TC, but that's not the case.

Thanks

dktreesea

I'm self employed. I would like to see a system where, for the purposes of calculating benefit "entitlements," self employed people are deemed to have an income the equivalent to 24 hours a week (or 30 hours a week, if they claim to work over 30 hours a week) at the NMW, regardless of whether they make this amount of profit or not. Self employement is not the same as being unemployed, because you are opting out of the obligations that unemployed people have to look for work/go to employment related training or whatever other hoops the DWP makes people jump through these days. I am all for people setting up as self employed - more power them for having a go and trying to create something. But as things stand at the moment you could run two ferraris and still make a loss and still claim for maximum benefits. That's a bit of a daft system, imho.

bestpud

tamiami wrote: »

I work from home for a travel company. I used to have a salary but the call centre closed down and made everyone redundant. Then they changed all their agents to commission only. I have a child so would only be able to work part time, or would have to pay for child care, so working from home suits me and as long as I get my £400 to £500 per month I don't mind how many hours I work.

That is exactly why it needs reforming!!!

Oldernotwiser

dktreesea wrote: »

I'm self employed. I would like to see a system where, for the purposes of calculating benefit "entitlements," self employed people are deemed to have an income the equivalent to 24 hours a week (or 30 hours a week, if they claim to work over 30 hours a week) at the NMW, regardless of whether they make this amount of profit or not. Self employement is not the same as being unemployed, because you are opting out of the obligations that unemployed people have to look for work/go to employment related training or whatever other hoops the DWP makes people jump through these days. I am all for people setting up as self employed - more power them for having a go and trying to create something. But as things stand at the moment you could run two ferraris and still make a loss and still claim for maximum benefits. That's a bit of a daft system, imho.

You can also claim that you have an Ebay business (as an example), claim full WTC, avoid signing on and no questions asked. I believe that the system is planned to change to exactly what you describe, and about time too!

tamiami

Bestbud - I don't understand your comment??!!
I work on a commission basis - I will work as many hours as I can to earn myself a £500 salary. So why should I not get my tax credits? Others don't work at all, at least I am earning myself a salary and getting my working tax credits like everyone else. I only get £133 a month from them !!!!!! - my husband works as well. So what am I doing wrong? Would you rather I give up my job and be on higher benefits?

tamiami

"But as things stand at the moment you could run two ferraris and still make a loss and still claim for maximum benefits. That's a bit of a daft system, imho."

How could you possibly claim benefits and have a fortune in assets, surely that is fraud? Or am I just naive?

bestpud

tamiami wrote: »

Bestbud - I don't understand your comment??!!
I work on a commission basis - I will work as many hours as I can to earn myself a £500 salary. So why should I not get my tax credits? Others don't work at all, at least I am earning myself a salary and getting my working tax credits like everyone else. I only get £133 a month from them !!!!!! - my husband works as well. So what am I doing wrong? Would you rather I give up my job and be on higher benefits?

It's wrong because you only earn the bare minimum so you can keep the tax credits rolling in!

If you took the tax credits out of the equation, you wouldn't have a cut off point at which you down tools!

tamiami

I actually have a 37 hour week rota with the travel company I am self employed by, and they are one of the big named travel companies - so I can prove how many hours I work a week.

There are more and more call centres closing down and switching their staff to homeworking, not just in the travel trade either. It is less overheads for the company and their staff have to work for their money as there is no guaranteed salary.

I don't think you understand or know what you are talking about!! Times have changed.