Help needed from TaxCredit experts please

Anonsk

Hiya,
Hope u are all well.

I need help with the income question.

For example:
I earn £100 a week i would x that by 52 weeks so total will be £5200 a year.

Now would that be my total income for the year without taking any expenses like, materials, telephone bill out of it?

Or from £5200 - £200 (materials, marketing, phone bill etc)= £5000

Which is my income £5200 or £5000?

Im trying to prepare myself for the renewal form.

Thanks

G51shopaholic

Are you self-employed? As you mention deducting materials but it is your top line that counts nothing else.

New rules start tomorrow - minimum 24hr week to qualify for Tax Credits, not 16 anymore.

Earn over £32,200 joint income and you'll lose child tax credits completely.

Dark days ahead for millions of people

G51shopaholic

£26,000 is the cut off point for one child

£32,000 for two children

Icequeen99

G51shopaholic wrote: »

Are you self-employed? As you mention deducting materials but it is your top line that counts nothing else.

New rules start today - minimum 24hr week to qualify for Tax Credits, not 16 anymore.

Earn over £32,200 joint income and you'll lose child tax credits completely.

Dark days ahead for millions of people

I disagree with all of what you have said here.

'Top line' i presume you are referring to employed people. If the OP is self-employed it is taxable profit that counts as income for tax credits and therefore business expenses will be deductible at arriving at his profit figure.

New rules start today 24 hours - yes but only for couples with children and even then there are some exceptions. Those aged 60 or over, or who qualify for the disability element will still qualify at 16 hours as will couples where one person works 16 hours and the partner is incapacitated, in prison, in hospital or entitled to carer's allowance.

Your last point re £32,200 is correct but only if you have 2 children and no childcare or disabilities. If you have more children, pay childcare or qualify for the disabilities you can get tax credits to much higher figures.

IQ

Notmyrealname

Anonsk wrote: »

Hiya,
Hope u are all well.

I need help with the income question.

For example:
I earn £100 a week i would x that by 52 weeks so total will be £5200 a year.

Now would that be my total income for the year without taking any expenses like, materials, telephone bill out of it?

Or from £5200 - £200 (materials, marketing, phone bill etc)= £5000

Which is my income £5200 or £5000?

Im trying to prepare myself for the renewal form.

Thanks

If you are self employed, your income for tax credits is your net profit - i.e income less deductible expenses.

So if your income was £5200 and you have £200 of tax deductible expenses, your income from self employment for tax credits purposes is £5000. If your expenses exceed your income and you have a loss, your income for tax credit purposes is £0 and you would carry the losses forward to reduce next years earnings.

If you are employed on PAYE and are claiming expenses via a P87, your income for tax credits purposes is your gross taxable income on your P60 less the amount you are claiming via a P87. So for example, those who are claiming for washing their work uniform, say for example they earn £10,000 and are claiming £150 via a P87 then their income for tax credit purposes is £9850.

G51shopaholic

That's why i asked if the poster was self-employed as the information is vague. They also don't mention how many hours a week they work, or wether they have children or not.

Figures I quoted were from ITN news which was on when I saw the posting.

Icequeen99

G51shopaholic wrote: »

That's why i asked if the poster was self-employed as the information is vague. They also don't mention how many hours a week they work, or wether they have children or not.

Figures I quoted were from ITN news which was on when I saw the posting.

Yes, but that's the problem with headlines and quoting figures on websites like MSE and in the press, without the detail they are wrong for many people.

Then other people hear them and quote them as absolutes. HMRC often do the same thing.

Your original comment on the hours suggested that the hours rules were changing from 16 to 24 for everyone.

IQ

suefos

i wonder if anyone has any suggestions with my tax credits before i ring hmrc,.... i receive child and working tax credit for my 17 yr, and 2 yr old daughters, my eldest will be 18 in august and is going to university i,m worried sick that when this happens (and quite rightly) her portion of child tax ends that i will no longer be able to afford my household bills, mortgage etc, i have a part time job but struggle to work more hours as i can't afford to pay the exta childcre costs, and also as my daughter hasn't finished auditioning for places we can't apply for help on the student finance, which help low income families with scholarships, you have to apply really early.. i'm at a loss as to what i should do.. i've thought of selling my house even... help?

Orville

Icequeen99 wrote: »

Yes, but that's the problem with headlines and quoting figures on websites like MSE and in the press, without the detail they are wrong for many people.

Then other people hear them and quote them as absolutes. HMRC often do the same thing.

Your original comment on the hours suggested that the hours rules were changing from 16 to 24 for everyone.

IQ

I agree that is what i thought the poster ment, i was just going to query this as i am a lone parent and have been told that the changes do not affect me. if they did i would have thought that a letter would have arrived by now telling me so.

Anonsk

Thanks everyone for your help .

Let me add
I am self-employed dressmaker. i am a single parent to 3 children and currently on maternity leave. I usually work between 16-20 hours mon-fri only. I work around my children and school runs.
My earnings are usually between £85-£100 a week. I dont have any childcare cost.

Icequeen99

Anonsk wrote: »

Thanks everyone for your help .

Let me add
I am self-employed dressmaker. i am a single parent to 3 children and currently on maternity leave. I usually work between 16-20 hours mon-fri only. I work around my children and school runs.
My earnings are usually between £85-£100 a week. I dont have any childcare cost.

You need to declare your taxable profit - which is whatever the figure you declare on your self-assessment form for tax credits. This will be your income less your allowance expenses.

IQ