Tax Credits working PT and Self Employed

vapd

Have I understood this correctly: For my WTC claim I need to estimate what I will earn from my self employment (just started up but also still got a part time 'day' job) over the rest of the financial year and then give them my self assessment at the end of said year and if I underestimated my income I will owe them money? But if I overestimated it I will get a back dated payment/it will be added onto next years?

Mersey_2

Largely, yes.

However, your entitlement to WTC now is based on your 2011/12 Taxable Income, ie say £3k in JSA and £2k in self-employment.

Remember everyone has a tax free Personal Allowance and so WTC are merely making up for the fact that you didn't use up your full personal allowance.

I assume you already have the application form; but, if not,
Telephone the WTC Helpline: 0345 300 3900. It'll take upto 2 weeks to arrive and they'll take upto 3 weeks to process it once received.

The average person over 25, working over 30 hours/week, who was on JSA throughout 2011/12 and went self-employed now would receive £52.08 per week til April 5th 2012, then it would be reassessed.

zagfles

Mersey wrote: »

Largely, yes.

However, your entitlement to WTC now is based on your 2011/12 Taxable Income, ie say £3k in JSA and £2k in self-employment.

Remember everyone has a tax free Personal Allowance and so WTC are merely making up for the fact that you didn't use up your full personal allowance.

I assume you already have the application form; but, if not,
Telephone the WTC Helpline: 0345 300 3900. It'll take upto 2 weeks to arrive and they'll take upto 3 weeks to process it once received.

The average person over 25, working over 30 hours/week, who was on JSA throughout 2011/12 and went self-employed now would receive £52.08 per week til April 5th 2012, then it would be reassessed.

It's only based on the previous year if current year income is less than £10k higher or less than £2500 lower. The first £10k rise or £2.5k drop is disregarded.

If 2011/12 was £5k and 2012/13 is £30k then tax credits in 2012/13 would be based on £20k, and if you don't give them an estimate of 2012/13 income you'd have a massive overpayment.

Mersey_2

True. I was just assuming with only 6 months of the tax year remaining 90% of people won't earn over £20k pro rata ie over £10k as a new start up.