Is the Universal credit a double edged sword for self employed with kids?

homeriscool

Hi all i would just like to hear your comments about what i have been thinking lately.

I lost my job 10 months ago as and could not get a job anywhere, so i started a small gardening business so i could make a little money and claim tax credits for my 4 children.

Because of fierce competition for gardening work i have struggled to gain the few customers that i have. after paying my fuel costs every week i am left with about £140 - £160 per week depending on customers needs.

Currently i fall short of the personal tax allowance and i dont earn enough to pay any tax.

When the Universal Credit ( UC ) comes into force i understand that the self employed will have to work a 35 hour week on at least minimum wage to qualify for any tax credits,which works out as a top line of earnings around £215 per week.

This will be very tough for a lot of self employed people to find the extra work and even if they do, the £215 per week will take people over the tax threshold and are liable to pay tax and also lose any tax credits amount they are currently getting because they are earning more money.

so does anyone here have any idea how much i would stand to lose ( or gain ? ) in the new Universal Credit system in my current circumstances.

princessdon

Do you have a partner

Do they work

What is the age of youngest

Sorry if that sounds rude, but answers are important

homeriscool

yes i have a partner and my youngest is 4 years old. my oldest is 11. my partner does not work ( unfortunately ) thanks

Mara69

Thank goodness this loophole is being closed. It is utterly ridiculous that people can faff about earning sod all, and be handsomely rewarded in the form of tax credits.

princessdon

Then your wife will also need to seek work as she in addition to you will have conditionality once your child hits 5. I'm on a phone so hard to type the long post it needs, but if someone else hasn't replied I will do so later, don't think you'll like the reply though.

rogerblack

Mara69 wrote: »

Thank goodness this loophole is being closed. It is utterly ridiculous that people can faff about earning sod all, and be handsomely rewarded in the form of tax credits.

I quite agree.
They should be made to look for non-existant work, and sit on the sofa eating crisps all day.
People trying to start buisnesses and make something of themselves deserve the harshest treatment.

Mara69

rogerblack wrote: »

I quite agree.
They should be made to look for non-existant work, and sit on the sofa eating crisps all day.
People trying to start buisnesses and make something of themselves deserve the harshest treatment.

There is work available. Far too many people are playing at being self employed so they can claim tax credits - without actually working.

If you are serious about making a business work you should be putting in 35+ hours a week.

The OP himself even says

homeriscool wrote: »

...i started a small gardening business so i could make a little money and claim tax credits for my 4 children

More money than JSA and no hassle. Sweet.

Own_My_Own

homeriscool, please ignore the poster quoted below.

The first winter will obviously be the hardest in your line of work. Not many people looking for gardeners at the moment. Hopefully work will pick up in the spring and you will get regular customers, who will need their garden tidied all year.

Mara69 wrote: »

There is work available. Far too many people are playing at being self employed so they can claim tax credits - without actually working.

If you are serious about making a business work you should be putting in 35+ hours a week.

Cutting imaginary lawns, and trimming imaginary hedges.

If the work is't there right now, then the work isn't there.

spacey2012

If everyone has to work for an Employer, who will employ people ?
Most Employers started off on their own and built up.

Same old tories, county miraculously becomes skint as soon as they get in and it's the fault of he poor.
Meanwhile the rich prosper.
How any working people were fooled in to voting for these hooray henry chums is besides me.

princessdon

spacey2012 wrote: »

If everyone has to work for an Employer, who will employ people ?
Most Employers started off on their own and built up.

Same old tories, county miraculously becomes skint as soon as they get in and it's the fault of he poor.
Meanwhile the rich prosper.
How any working people were fooled in to voting for these hooray henry chums is besides me.

They get 12 months. Also before tax credits if you started a business you self funded and or had another job.

Of course they can stay self employed no one says they need to give it up.

homeriscool

Mara69 wrote: »

Thank goodness this loophole is being closed. It is utterly ridiculous that people can faff about earning sod all, and be handsomely rewarded in the form of tax credits.

Believe it or not i actually agree with you! it is a sad state of affairs and work should always PAY!

I dont make the rules up, but at the end of the day i have young children who didnt ask to be born, i brought them into this crappy world and its my duty to look after them any way i can.

I had a decent job that took care of all my family but thanks to the reccesion ( caused by rich bankers - not hard working people ) there are thousands of people like me and its not our fault.

The faff im making over my earnings are genuine, if i could have a job that paid me what im used to i would be doing it right now.

One day you may lose your job or business, see how hard it is to make a come back in this economic climate....