self employment,tax credits andincome??

Icequeen99

azmilligan71 wrote: »

thanks again everyone.I have phoned AGAIN and fully explained my situation and put it several ways term time and working only 39 weeks of the year....and finally I got this answer after stating I have phoned several times and still dont feel comfortable with info given and I want to get it right and do everything correctly. Latest info given by a adviser is yes entitled to WFTC on 17.5 hours per week as 16 hours or more,not working on school holidays including xmas ones still fine still entitled to WFTC,however the summer holidays because not working for longer than 4 weeks I have 2 options, I can work for some of the summer hols so not continously not working more than 4 weeks or at start of hols telephone and advise not working again until end of summer hols and they will stop WFTC I then phone again at end of hols and start claim again,told entirely up to me what I do and they will calculate my entitlement on my annual net profit from my self assessment. I hope this information helps other people.......thanks goodness I have it all straight now.....hopefully. So I intend to work 2 weeks out of the 6/7 summer holidays so there is no break in my WFTC.......phew lol

Not quite right again unfortunately.

If you ring at the start of the summer holidays and say you are no longer working, your WTC will continue for 4 weeks anyway so you would only be 2 weeks short.

The 4 week rule is not absolute either. There is nothing in the legislation that allows you to take up to 4 weeks off without it affecting your work. What they are referring to is a 'grace' period of 4 weeks that they introduced for people being laid off work. If it is less than 4 weeks then it won't interrupt your normal working hours.

So you will need to make sure that you work at least 16 hours all of the other weeks and make sure the gaps are less than 4 weeks.

I would suggest you keep a detailed diary noting where you worked and what you were paid so if you get picked up for a check you can provide what you did for your 16 hours.

The helpline are extremely unreliable, it is very worrying.

IQ

nannytone_2

so what in fact they have advised is to claim.... qoek term time... then get the 4 week run on when not working and the claim starts again when the new term begins.

that is so wrong and needs to be looked at.
any self employed person with kids could do this.
so not only doe a couple with children only need to work 24 hours a week ... they also need only work 39 weeks a year to still be entitled.

shocking!

azmilligan71

thanks IQ can I clarify cause I really want everything above board. I intend to work 17.5 hours min per week apart from school holidays lasting less than 4 weeks ie easter and xmas break (adviser said no problem with not working any of these breaks) summer holiday as they are 6/7 weeks I will need to work at least 16 hours per week for 2-3 of them and then I can continualy receive and be eligilble for WFTC so the adviser 'said' I took name etc and asked for all info given to be put on my file so record of info given to me.I am a single mum of three and find it very difficult to find a term time job so thought I would try and earn living this way........just out of interest, how have you become so knowledgable on tax credit issues?

zzzLazyDaisy

You will almost certainly be an employee, not a self-employed contractor (it is irrelevant what label the parties choose to place on the arrangement).

http://www.hmrc.gov.uk/employment-status/

PasturesNew

You might not qualify as "self employed". If you're working for one client, HMRC would probably see you as employed.

You need to check their rules about the definition of self employment.

Icequeen99

nannytone wrote: »

so what in fact they have advised is to claim.... qoek term time... then get the 4 week run on when not working and the claim starts again when the new term begins.

that is so wrong and needs to be looked at.
any self employed person with kids could do this.
so not only doe a couple with children only need to work 24 hours a week ... they also need only work 39 weeks a year to still be entitled.

shocking!

It isn't clear whether the helpline were referring to the 4 week run-on or the 4 week grace period introduced for people who are laid off. Combined it gives an 8 week period and as OP has CTC she probably could cover the whole 6 week holidays without a gap in payment thinking about it again.

IQ

Icequeen99

azmilligan71 wrote: »

thanks IQ can I clarify cause I really want everything above board. I intend to work 17.5 hours min per week apart from school holidays lasting less than 4 weeks ie easter and xmas break (adviser said no problem with not working any of these breaks) summer holiday as they are 6/7 weeks I will need to work at least 16 hours per week for 2-3 of them and then I can continualy receive and be eligilble for WFTC so the adviser 'said' I took name etc and asked for all info given to be put on my file so record of info given to me.I am a single mum of three and find it very difficult to find a term time job so thought I would try and earn living this way........just out of interest, how have you become so knowledgable on tax credit issues?

I prefer not to say how I know tax credits!

It isn't clear whether the helpline are suggesting you take advantage of something called the 4 week run-on or the 4 week grace period I mentioned above.

In theory, you could take the first 4 weeks off as part of that grace period and then ring up and say you are no longer working. At that point, the 4 week run-on kicks in and would cover the next 2 weeks of the holidays. When you ring up and report you are working again they will start WTC again so there wouldn't be any gap even if you didn't work the whole 6 weeks.

To do this is, in my opinion, pushing the boundaries and the 4 week grace period is not in legislation. It is a relaxed interpretation of 'normal working hours' by HMRC in the current economic climate. You therefore need to document everything carefully. It could raise some questions under a compliance investigation.

As others have said your first step is to check you are actually self-employed, as they say just because you think you are and the person you are working for wants you to be doesn't decide it. It is based on the facts of the situation.

You will also need to look into the National Insurance situation (Class 2 - get a small earnings exemption if necessary) and register for tax (even though your earnings will be low) making sure you keep appropriate records.

IQ

nannytone_2

its definately a 'loophole. that many people will only be too happy to take advabtage of though.

although the OP may meet the conditions, it clearly wasnt designed so that people could 'choose' to only work for 39 weeks a year and still claim for 52

azmilligan71

Icequeen99 wrote: »

It isn't clear whether the helpline were referring to the 4 week run-on or the 4 week grace period introduced for people who are laid off. Combined it gives an 8 week period and as OP has CTC she probably could cover the whole 6 week holidays without a gap in payment thinking about it again.

IQ

think he was referring to 4 week grace, he gave example of seasonal worker entitled all year as long as not unemployed for longer than 4 weeks can continue claiming.......IQ does information seem correct now,have I understood correctly..

azmilligan71

Icequeen99 wrote: »

I prefer not to say how I know tax credits!

It isn't clear whether the helpline are suggesting you take advantage of something called the 4 week run-on or the 4 week grace period I mentioned above.

In theory, you could take the first 4 weeks off as part of that grace period and then ring up and say you are no longer working. At that point, the 4 week run-on kicks in and would cover the next 2 weeks of the holidays. When you ring up and report you are working again they will start WTC again so there wouldn't be any gap even if you didn't work the whole 6 weeks.

To do this is, in my opinion, pushing the boundaries and the 4 week grace period is not in legislation. It is a relaxed interpretation of 'normal working hours' by HMRC in the current economic climate. You therefore need to document everything carefully. It could raise some questions under a compliance investigation.

As others have said your first step is to check you are actually self-employed, as they say just because you think you are and the person you are working for wants you to be doesn't decide it. It is based on the facts of the situation.

You will also need to look into the National Insurance situation (Class 2 - get a small earnings exemption if necessary) and register for tax (even though your earnings will be low) making sure you keep appropriate records.

IQ

just to explain I am setting up a general services ie ironing,domestic cleaning,babysitting small business I will be advertising and relying on word of mouth as i live in a small village. I will also me given work from another small cleaning company basically their overflow from different clients and will be invoicing them for my services, I will be choosing what work and hours I take from them on top of my own clients and using customers own products, once I get enough self generated business I will probably not take any from them. I will be keeping all records of appts and invoices for money received and keep accounts,receipts etc and as my children grow I will be able to increase hours, that is the plan I want to do everything correctly and abouve board on that basis I understand I am self employed. I have phoned different helplines,job centres etc to make sure I'm doing everything correctly....hence asking questions on here