Working Tax Credits - False overpayment

bestpud

tamiami wrote: »

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.

You said you work as many hours as it takes to earn £500...

That suggests you have a target and you work to that target, knowing tax credits will subsidise you.

If you weren't getting tax credits, you would not stop at £500 - you'd earn as much as you could.

What makes you think I don't understand?

And what has changing times got to do with it?

What would you do if you couldn't rely on those tax credits? Would you still do the job you do, or would you look for something that pays better?

melly1980

Ah, the usual morons are out in force.

Just a quick point from me, if they didnt earn anything because they downed tools they would then be an even larger burden on the tax payer and wouldnt be contributing.

Still though, anything to make a number look good even if it doesnt save anything in reality. Seems to be a habit from the current government who actually cost us money by some of their so called cost cutting measures.

bestpud

melly1980 wrote: »

Ah, the usual morons are out in force.

Just a quick point from me, if they didnt earn anything because they downed tools they would then be an even larger burden on the tax payer and wouldnt be contributing.

Still though, anything to make a number look good even if it doesnt save anything in reality. Seems to be a habit from the current government who actually cost us money by some of their so called cost cutting measures.

There is a lot of self-employed people running businesses that make nothing for years!

If it weren't for tax credits, that wouldn't happen.

If people want to claim benefits, then they should get themselves to the job centre and do it that way.

Subsidising failing businesses, or ones that would never earn someone a proper living from the outset is not sustainable when lots are jumping on the bandwagon - and why wouldnt they!

But don't let facts get in the way of a good moan! .

tamiami

I said I like to earn a minimum of £400 - £500 per month, as long as I hit this target I know my bills are paid. Obviously my aim is much higher but then I would also like to win the lottery each month - some things are not easily achievable, lol.

In the busy summer months I can double or treble that - I just like to earn "AT LEAST" £500 per month to survive and pay my bills and have a holiday each year and enjoy life.

I'm just saying it isn't as cut & dry as you say. If you are self employed then your earnings fluctuate over the year. On a bad month (Nov & Dec for instance) my child and working tax credits are a godsend.

My self assessment is submitted each year and my working tax credits are amended accordingly.

Part of my tax credit payment is for Child Tax Credits - which I believe everyone who has kids are entitled to anyway.

Bestbud- you seem to have an issue with this - are you one of the lucky ones who has a full time salaried job and earns £40k plus a year then - are you jealous because you do not qualify for them?

bestpud

tamiami wrote: »

I said I like to earn a minimum of £400 - £500 per month, as long as I hit this target I know my bills are paid. Obviously my aim is much higher but then I would also like to win the lottery each month - some things are not easily achievable, lol.

In the busy summer months I can double or treble that - I just like to earn "AT LEAST" £500 per month to survive and pay my bills and have a holiday each year and enjoy life.

I'm just saying it isn't as cut & dry as you say. If you are self employed then your earnings fluctuate over the year. On a bad month (Nov & Dec for instance) my child and working tax credits are a godsend.

My self assessment is submitted each year and my working tax credits are amended accordingly.

Part of my tax credit payment is for Child Tax Credits - which I believe everyone who has kids are entitled to anyway.

Bestbud- you seem to have an issue with this - are you one of the lucky ones who has a full time salaried job and earns £40k plus a year then - are you jealous because you do not qualify for them?

TBH your situation isn't in the same league as some we get on here.

Really, you are in a similar situation to a PAYE person with few contracted hours but with plenty of scope for overtime.

I work part time and my OH works full time and we receive child tax credits, but interestingly, melly is in the situation you describe.

The problem with the current tax credit rules is people can and do start businesses on a whim and go on for years earning nothing but receiving tax credits. Some even make a 'loss' and have the tax allowance transferred to their partner, so they gain again.

Many of them also receive housing and council tax benefit!

It's just not sustainable as I'm sure you can see...

melly1980

bestpud wrote: »

There is a lot of self-employed people running businesses that make nothing for years!

If it weren't for tax credits, that wouldn't happen.

If people want to claim benefits, then they should get themselves to the job centre and do it that way.

Subsidising failing businesses, or ones that would never earn someone a proper living from the outset is not sustainable when lots are jumping on the bandwagon - and why wouldnt they!

But don't let facts get in the way of a good moan! .

there is no moaning I am stating a fact.

If a self employed person can no longer earn this low amount of money they will end up claiming more money from the tax payer. I had this discussion regarding my wifes childminding business, if she is stopped from doing it....great. Thats a few K less income and our tax credits increased by 39% of that few K.

We end up worse off as we have lost the differential between wages and the taperd amount and the government ends up worse off by paying a higher amount of tax credits. Really clever that is.

tamiami

Why did they create tax credits anyway? What did it replace? I don't know any of this as until a few years ago I was in full time employment for the same company for 15 years, until my company closed down and all the manufacturing went to the far east (another gov mess up). My daughter is only 7 so all I used to get was child tax credits which I believe replaced the married man's tax code??

bestpud

tamiami wrote: »

Why did they create tax credits anyway? What did it replace? I don't know any of this as until a few years ago I was in full time employment for the same company for 15 years, until my company closed down and all the manufacturing went to the far east (another gov mess up). My daughter is only 7 so all I used to get was child tax credits which I believe replaced the married man's tax code??

Im not sure what the aim was, but there was family credit before tax credits.

In fact there has been some sort of low income supplement in place for as long as I've had children, and my eldest is 21.

Oldernotwiser

tamiami wrote: »

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

Tax Credits don't take assets into account, only the income from invested capital.

GobbledyGook

The aim of working tax credits was to help people on benefits get back into work. It was to incentivise people to take low paid jobs because they'd not be worse off than on benefits. Mainly it was to help people on benefits going into low paid jobs to get help with childcare.

Originally it was supposed to be only for people coming off benefits and only for 2 years. For whatever reason they changed that.

The biggest issue with tax credits is the massive increase in childcare costs since it was introduced. It wasn't anticipated that people on higher wages would end up qualifying because child care costs would soar.