Working tax credits for self employed

BigAunty

SailorSam wrote: »

Isn't Wtc due to be done away with because so many are playing the system.

Not specifically because of abuse, perhaps more because they can be counter-productive, motivating people to remain in part time or low paid employment because taxation and benefit withdrawal can disincentivise some people from working extra hours.

Tax credits are one of many benefits that are being dissolved as multiple ones are rolled into a single payment under the Universal Credit system.

You do have a point in that UC is supposed to reduce fraud and admin errors, and the government has expressed an expectation that under UC the self employed will have less long-term benefit dependency because they are now set a target (National Minimum Wage) to achieve rather than achieving it through working a minimum number of hours, so there is an emphasis on making profit now that did not previously exist for the SE.