Please help - they cancelled my IS two weeks ago without me knowing. How will this af

merlin68

What i'm saying is she might be working but she has no income, it took my friend a year to establish her cleaning buisness and with the economy as it is will be much harder now.
It's taken us since may last year to earn a liveable wage of self employment.
Fair play to po for getting of benifits but i would have secured the customers first, just in case.

benefitbaby

merlin68 wrote: »

'Work done setting a business up is not generally classed as being done in expectation of payment. A person will only reasonably expect to be paid for work done once the business is up and running.'
So if she gets no clients she can still claim wtc indefinately i take it.
I would have got the clients first then given up is.
Otherwise she will be in a right pickle with money.

That is why I suggested she work for 15 hours per week whilst establishing her business and thus safely can retain IS.

If the OP opts to put in more hours it is a WTC not IS that is applicable and yes she can be paid WTC whilst doing the marketing, advertising etc as this will generate her income. The tax credit guide also confirms "It does not necessarily matter that a self-employed earner might trade at a loss."

dookar

benefitbaby wrote: »

The OP has registered as a self/emp cleaner, she will be advertising, delivering/putting up flyers, negotiating with clients - all in expectation of payment via cleaning contracts.

uh, yeah, I know

lowla

Hi again.

I just wanted to mention that i couldn't have stayed on IS. I am doing approx 25 hours a week just now by researching, setting up my website and leafleting. I would be comitting fraud if i claimed IS while doing this, and i wouldn't be able to slow it down to just 15 hours a week or i'll get nowhere fast.

Basically, i've switched IS for WTC. So i'm not going to be without any money as such.

Obviously after the website and majority of advertising/research is finished, my working hours will decrease and i'll let tax credits know.

benefitbaby

dookar wrote: »

uh, yeah, I know

Doh, I just re-read your post... sorry (i need my bed!)

benefitbaby

lowla wrote: »

Hi again.

I just wanted to mention that i couldn't have stayed on IS. I am doing approx 25 hours a week just now by researching, setting up my website and leafleting. I would be comitting fraud if i claimed IS while doing this, and i wouldn't be able to slow it down to just 15 hours a week or i'll get nowhere fast.

Basically, i've switched IS for WTC. So i'm not going to be without any money as such.

Obviously after the website and majority of advertising/research is finished, my working hours will decrease and i'll let tax credits know.

Good luck and I hope all goes well for you

~Chameleon~

What counts as work for Working Tax Credit?

Working Tax Credit is based on the hours you work and get paid for, or expect to be paid for. It doesn't matter if you're employed or self-employed, but unpaid work doesn't count as work when claiming tax credits. Check if your work can help you qualify for Working Tax Credit.

Surely the work being done to set up the business isn't classed as work for WTC purposes as it is unpaid work?

lowla

Just off the phone to a lady in the income support department.

She told me my IS claim has definitely been suspended, and it may affect my entitlement to the back to work grant etc. She has arranged for someone to call me back in the next 3 hours to discuss.

She said i might be able to do my review over the phone but this may stil count as a suspension therefore, i won't get the back to work grant.

lowla

Sorry to be an old stick in the mud, but just wanted to update.

A man from IS has just called back and did a review over the phone with me. He said he'll email the jobcentre to release they payment i am owed from the 24th Aug, and apparantly my claim was still running it was just the payment stopped. So this means there is NO break in my claim and i'm entitled to the grant.

So i can buy in the rest of my cleaning supplies as soon as that comes through and i'm ready to roll!

Thanks everyone.

missapril75

~Chameleon~ wrote: »

Surely the work being done to set up the business isn't classed as work for WTC purposes as it is unpaid work?

Perhaps.

There is work setting up the business and there is ongoing work. But they might both be the same thing. Leafleting mentioned, for example, could be both.

Readying the premises just rented to trade from would be setting up but not ongoing.