Avoiding Claiming JSA and Starting My Own Business

Truegho

Thank you for your advice. It was much appreciated.

Unfortunately, this new Universal Credit system, from what I've read, will put self employed at a great disadvantage. Why on earth did they even conceive of stupid, hare-brained scheme in the first place? Why couldn't they leave the system as it is?

paulineb wrote: »

I get working tax credits and Im self employed. I got them in 2010 when I was first self employed and had a gap of a couple of years before starting up again. HMRC have never asked that Im earning the minimum wage for the number of hours worked. All HMRC ask is that you submit a tax return. The working tax credits people also have never asked to see that Im earning a minimum wage for the work I do. Some months I will and some I wont and thats the same for a lot of people in self employment.

It will be harder to claim universal credit for people who are self employed because it will be assumed that if you work 30 hours a week you'll get at least the minimum wage, but Ive never been asked to do anything apart from submit a tax return, which Ive done twice now, obviously keep financial records and submit my previous years earnings to the working tax credit people to get an award of working tax credits.

The criteria is that you work 30 hours a week on the business. Some of the work I do in my business is admin and publicity to try and get bigger numbers in the work I do. There will be hours I work during the week that pay me more than the minimum wage per hour and hours I work that pay me less.

Getting working tax credits has always been quite simple for me and I am aware that things may be much different when UC comes in and what I would say is, be aware that you will need to factor in a change from WTC to UC and that if you get a WTC award and then lost it under the new UC system, that you would be able to manage financially.

paulineb_2

Im not missing the point. Ive been self employed twice in the last 3 years as I said and all HMRC have ever asked me to show is my tax return and to keep financial records. All the working tax credit people have ever asked me to do is provide them with the information they need to decide what if any WTC I am entitled to.

This 30 hours a week x the national minimum wage is being stated now because when UC comes in its going to be assumed that people who are self employed will earn at least the national minimum wage. But thats different from a sole trader having to show HMRC that they earn that. They dont.

HMRC ask to see your tax return. They ask you to keep financial records. They dont ask to see that a sole trader makes at least the national minimum wage for every hour they work. Theres no such satisfying of criteria as far as HMRC are concerned.

And as I said above the working tax credit people want to see that a single person is working at least 30 hours a week on the business before awarding them WTC. But they dont ask that someone earns the national minimum wage for every hour that they do either.

Some businesses dont, some work is seasonal where people will earn much more in summer and less in winter. Its ridiculous to assume that people will always earn 30 hours a week times the national minimum wage.

And yes, there might be a school of thought that thinks if someone has a business it should be earning a certain amount in £££s, but businesses take time to build, a lot of businesses will make a loss in their first year of trading and can take 18 months plus to start showing profit

All the OP needs to do if they want working tax credits is to satisfy that they meet the criteria financially. If they want to register as a sole trader they can do so and they'll be legally obliged to send in a tax return annual and keep financial records.

But theres no requirement to show HMRC or the working tax credit people that you earn 30 hours a week times the national minimum wage.
And again yes, when UC comes in its assumed that every sole trader or small business will be earning that and some people might lose out in WTC when the changeover to UC happens.

But all this talk of satisfying criteria before you get working tax credits because HMRC want to know that you are going to earn at least the national minimum wage x 30 hours a week is wrong. HMRC dont ask that at all. Neither do the working tax credit helpline. All you do is fill in a form showing what you earned the previous year either in benefits, self employed income or wages or a combination of all and you either get an award or you dont.

andyscott

I was recently told that self employed will be expected to work 30+ hours per week at least NMW but surely this would mean you earning too much to get Universal Credits.

I was also told that new business owners would be given 12 months before needing to show they are earning NMW.

Rylynn

The universal credit system does not come in yet though does it?

I have been made redundant I want to work but finding a job is pretty hopeless, I am phoning the WTC Monday to tell them I have been made redundant, and that I want to become self employed working for 30 hours per week.

I want to know can this be doing two jobs, ie online writing and also online selling? and can that be under one sole trader name? do I even have to be a sole trader?

hope someone can help, as I do not want to be on the dole I want to earn for myself. I have no idea if I will earn the NMW initially but I want to work from home for 30+ per week.

Thanks in advance, this site has been wonderful to me over the years and a minefield of information.