UTC - Run-up national purge of wtc claimants and UTC safe guards

justjohn

UC - Run-up national purge of wtc claimants and UC safe guards

Seems to be on a few forums that wtc/hmrc are querying working hours for the self employed then booting people from wtc if hours don't stack up.

Also the new universal tax credits white paper states no one will be worse of.

However if you have you have over 16k in savings and do not hit minmuim wage floor you will have no protection from being worse off.

coffeelover65

Its Universal Credit not Universal Tax Credits.

Are you sure you're not getting confused with the recent change for people to work 24 hours as opposed to 16 hours to remain eligible for WTC?

I'm seeing a number of claims where people have suddenly declared that they now work 24 hours per week when previously they worked 16 for years. I'm not been cynical or anything and maybe its just purely coincidental that people suddenly increased their working hours following tax credit changes.

justjohn

unsure on the hour changes, however have seen a few posts on here and on other forums regarding hmrc scrutinizing the hours worked.

FRESTER

My wife had a self employed review last month with tax credits.
All was well but beware anyone not doing the hours stated etc because they are cracking down on dodgy self employed claims.

nannytone_2

why shouldnt the hours worked be scruitinised?

one of the main eligibility criteria is hours worked, so if you dont work the relevant hours, youre not entitled to tax credits.

its the same rule for employed claimants too.
why should it be any different for the self employed?

Sixer

coffeelover65 wrote: »

Are you sure you're not getting confused with the recent change for people to work 24 hours as opposed to 16 hours to remain eligible for WTC?

No; he's talking about the proposals for self-employed people when they're migrated to UC. UC has a cash income floor rather than an hours worked requirement like tax credits has. It also has a capital limit while tax credits don't.

Tax credits claimants will get transitional protection, meaning they won't get less dosh on transfer if they're a loser in the new system. Those with capital, for example, will get protection until they have a change of circumstance.

But the proposals say that self-employed tax credits claimants who earn less than the cash threshold won't be eligible for transitional protection, even though all employed claimants are.

Whether you think transitional protection is right or not (arguments both ways, I guess) - it's an inescapable fact that self-employed claimants will be treated in a disadvantaged way to employed claimants on transfer to UC.

coffeelover65

@Sixer, the OP is talking about people are currently been booted off of WTC for some reason, so the issue is obviously not UC which doesn't come in until next year.

justjohn

nannytone wrote: »

why shouldnt the hours worked be scruitinised?

It should be.....never said it should not

Sixer

coffeelover65 wrote: »

@Sixer, the OP is talking about people are currently been booted off of WTC for some reason, so the issue is obviously not UC which doesn't come in until next year.

OP's post isn't that clear, but I think he was making two points. Firstly, as you describe. Secondly, this part:

Also the new universal tax credits white paper states no one will be worse of.

However if you have you have over 16k in savings and do not hit minmuim wage floor you will have no protection from being worse off.

I think he was talking about transfer from tax credits to UC.

justjohn

Sixer wrote: »

Whether you think transitional protection is right or not (arguments both ways, I guess) - it's an inescapable fact that self-employed claimants will be treated in a disadvantaged way to employed claimants on transfer to UC.

Would think most people will just salary themselves in some way.

There is also no consideration for a Partnerships. It may not be a equal split partnership. Eg one partner could be hitting the cash threshold other partner may not. They may not even be on the same UC claim.

justjohn

Sixer wrote: »

Also the new universal tax credits white paper states no one will be worse of.

However if you have you have over 16k in savings and do not hit minmuim wage floor you will have no protection from being worse off.

I think he was talking about transfer from tax credits to UC.

Yes lol
Also HMRC seem to be clearing out so too speak before UC comes into force.