self employed and working tax credit

[Deleted User]

So...can anyone help ?
Times are hard at the mo being self employed ! My earnings have decreased over the past two years even though I'm still working 35-40 hours a week (an average of £135 per week) and was wondering if anyone had an idea of how much I would get a month if I claimed working tax credit. This last tax year I ran at a loss if that helps.I live alone in my own flat after being divorced 18 months ago...no dogs or cats and with everyday costs increasing life is getting particularly tough !!

BigAunty

You can identify this on the Turn2us online benefit calculator, plus any entitlement to council tax discount (and housing benefit if you are a tenant).

You should look into how the changes will affect the self-employed under the move to the Universal Credit system when tax credits get scrapped. There is an expectation built into UC that the self employed with established businesses should be able to earn at least the National Minimum Wage from it, or wind up the business, or seek either regular employment or a part time job on top of their SE.

HappyMJ

Do you own the flat or are paying rent on it?

Being single you could get up to £1,920 per year for the basic element and £790 a year if you work more than 30 hours each week (holidays excluded). Whatever you earn above £6,420 a year reduces your tax credits claim by 41 pence in the pound on every pound you earn in excess of £6,420 a year.

[Deleted User]

HappyMJ wrote: »

Do you own the flat or are paying rent on it?

Being single you could get up to £1,920 per year for the basic element and £790 a year if you work more than 30 hours each week (holidays excluded). Whatever you earn above £6,420 a year reduces your tax credits claim by 41 pence in the pound on every pound you earn in excess of £6,420 a year.

I own the flat

shedboy94

Deleted_User wrote: »

So...can anyone help ?
Times are hard at the mo being self employed ! My earnings have decreased over the past two years even though I'm still working 35-40 hours a week (an average of £135 per week) and was wondering if anyone had an idea of how much I would get a month if I claimed working tax credit. This last tax year I ran at a loss if that helps.I live alone in my own flat after being divorced 18 months ago...no dogs or cats and with everyday costs increasing life is getting particularly tough !!

What did you use as income for council tax/utilities/food/clothing etc?

[Deleted User]

shedboy94 wrote: »

What did you use as income for council tax/utilities/food/clothing etc?

How do you mean ?
outgoings were more than income as in my self assessment tax return if that's any help.My council tax is 81 a month...I get single persons allowance with that....

dundeediva

Deleted_User wrote: »

How do you mean ?
outgoings were more than income as in my self assessment tax return if that's any help.My council tax is 81 a month...I get single persons allowance with that....

I think shedboy means as his post asked, what did you live off of if you ran at a net loss. ie how did you pay your bills? What drawings did you take from the business? I could be wrong but thats how i read it.

[Deleted User]

ok....get ya....well cut back on steak... etc.. !! Had help off parents to pay a few bills....have to pay ex wife 120 a month too..it all adds up...just cut corners here and there..worked out the ins and outs and was like £ -1095 ...I've asked a simplish question...does anyone want my exact bank accounts next ? I suppose I could just jack it all in and claim benefits and sign on for the lot...but I don't want to do that.Thanks for the replies.

Caz3121

http://www.hmrc.gov.uk/taxcredits/people-advise-others/entitlement-tables/work-no-child.htm

benefitbaby

Deleted_User wrote: »

ok....get ya....well cut back on steak... etc.. !! Had help off parents to pay a few bills....have to pay ex wife 120 a month too..it all adds up...just cut corners here and there..worked out the ins and outs and was like £ -1095 ...I've asked a simplish question...does anyone want my exact bank accounts next ? I suppose I could just jack it all in and claim benefits and sign on for the lot...but I don't want to do that.Thanks for the replies.

Don't mind us lot asking a lot of nosy questions, the reason they (and me) ask is because often the answers will enable us to answer more accurately.

The way I see it at the moment you could claim tax credit just remember to keep scrupulous records as HMRC will check.

In addition if you have savings under £16k (which I guess is the case as you talk of cutting back) then you could qualify for council tax benefit to assist with more of the CT bill.

Ultimately if the business does not pick up and you do decide to shut up shop (so to speak) then you could claim JSA (£71 per week) again only if savings under £16k and if you have mortgage costs you may qualify for help with the mortgage interest after 13 weeks (but they only pay 3.6%).

Hope this helps and good luck.

paddedjohn

Deleted_User wrote: »

ok....get ya....well cut back on steak... etc.. !! Had help off parents to pay a few bills....have to pay ex wife 120 a month too..it all adds up...just cut corners here and there..worked out the ins and outs and was like £ -1095 ...I've asked a simplish question...does anyone want my exact bank accounts next ? I suppose I could just jack it all in and claim benefits and sign on for the lot...but I don't want to do that.Thanks for the replies.

You may have to show them to get benefits.