self employment no profit lost wtc....

trufflebuggy

Is this correct?

In 2010-11 I was on mat leave so didn't earn very much and this was off set to dh self employment losses. (i.e. zero on claim)

We've now found out we won't get wtc anymore? Is this right?

I can't find anywhere that says if you earn below a set amount you don't get it anymore.... confused! As we've still got childcare bills to pay and abit worried.

thanks

princessdon

To be honest - I see why they are doing this as otherwise anyone can claim they run a business - claim working tax and not work then file zero profit.

trufflebuggy

But what happens on a really bad year when the self employed partner of the couple effectively wipes out the employed partners salary? and you're now even worse off.

I can see the logic I suppose... not that it helps pay the childcare all of a sudden.

princessdon

It's no help and those whose partners work part time are in the same situation too.

He needs to work and if his SE isn't bringing in money - then he needs to get a part time job

joandkaz1

It's not anything to do with the new 24 hour minimum is it?

sleepless_saver

"If you have children:

To get Working Tax Credit you need to be aged at least 16, and working the following hours:
...
if you're in a couple, your joint working hours need to be at least 24 a week, with one of you working at least 16 hours a week

So if you're in a couple and only one of you is working, that person must be working at least 24 hours a week."

HMRC

Anubis_2

Childcare costs are paid with child tax credit are they not? Are you claiming Child Tax Credit? You can claim Child Tax Credit if you are responsible for at least one child or young person. You do not have to be working to claim.

sleepless_saver

Anubis wrote: »

Childcare costs are paid with child tax credit are they not? Are you claiming Child Tax Credit? You can claim Child Tax Credit if you are responsible for at least one child or young person. You do not have to be working to claim.

Childcare costs goes with working tax credit - I guess the reasoning is that you have to be working to claim them. See leaflet.


OP, which year is it you think you can't claim WTC for? Not sure how your reference to 2010-11 fits in.

Anubis_2

sleepless_saver wrote: »

Childcare costs goes with working tax credit - I guess the reasoning is that you have to be working to claim them. See leaflet.


OP, which year is it you think you can't claim WTC for? Not sure how your reference to 2010-11 fits in.

They are still working but not enough income, so have child are costs still, but thanks for clarifying.

I wasn't sure if they claimed CTC previously and WTC was taken away because of lack of income ( not lack of working ) that child care costs could still be paid, but I guess not.

Sixer

trufflebuggy wrote: »

Is this correct?

In 2010-11 I was on mat leave so didn't earn very much and this was off set to dh self employment losses. (i.e. zero on claim)

We've now found out we won't get wtc anymore? Is this right?

I can't find anywhere that says if you earn below a set amount you don't get it anymore.... confused! As we've still got childcare bills to pay and abit worried.

thanks

Have they disallowed your WTC claim because they say your DH was not working in expectation of payment due to his s/e losses? Do you realise you BOTH need to be working at least 16 hours to qualify for childcare?

We need more details to be able to help you. Why exactly have they disallowed your claim? What were your figures? For what period are the outstanding childcare bills?

trufflebuggy

I work 18.75 hours a week (employed) and dh is a farmer working 30+ hours a week.

My salary in 2010-2011 was totally offset against his losses that year. So although we both worked it was zero pay on paper.

We've had to estimate his 2011-2012 and we've given them an 18800 total income, I hadn't realised/noticed at the time of doing on the award notice that the wfc credit had stopped. (back in Jan - as the ctc had continued, and I didn't go through it well enough - obviously).

The only thing the lady on the phone said was that it was because we'd earnt zero so we don't get wtc. I was abit shocked so didn't know what to ask/say.

Worried now that there's a lower level and we're going to dip below again and never get wtc back.

We also have our award worked out on the year we're in but have to estimate each time if that makes sense.

Are there lower limits for earnings for ctc too??

So confused, should we not have offset his losses to my salary?, or do you have to do this anyway... never heard about it before this last tax return/award notice etc... So worried I've majorily cocked up.

thanks

I pay childcare in advance, so they're not outstanding yet but it's going to be hard to now find that 360 pounds a month in the future