Tax Credit Min Wage Precondition - I Need Advice

Truegho

Is this precondition that a new business MUST be earning the MINIMUM WAGE before any claim for Working Tax Credit can be awarded?

I have just started my own business as a self-employed writer, but have been told by Tax Compliance that I may not get WTC because my business is not yet earning the min wage. But how on earth can a business be expected to earn the min wage if it is only just starting off???

pinkypoopydoo

I was asked for what my projected turnover would be up to the end of the tax year, along with how many hours I was expecting to work a week to earn that. Looking at it, my earning are projected to be just under min wage levels for this year (by pennies per hour worked), but I have been awarded WTC.

A neighbour had her claim turned down, as she projected a total annual turnover of £1000 for full time (40 hrs/week) self-employment.

I think it's about being able to prove that you have a realistic business, or else anyone could say they have a small business, earning next to nothing, and get full WTC.

Caz3121

your previous thread https://forums.moneysavingexpert.com/discussion/4601553 are you still expecting to earn £200 per month for 30+ hours a week?

Truegho

pinkypoopydoo wrote: »

I was asked for what my projected turnover would be up to the end of the tax year, along with how many hours I was expecting to work a week to earn that. Looking at it, my earning are projected to be just under min wage levels for this year (by pennies per hour worked), but I have been awarded WTC.

A neighbour had her claim turned down, as she projected a total annual turnover of £1000 for full time (40 hrs/week) self-employment.

I think it's about being able to prove that you have a realistic business, or else anyone could say they have a small business, earning next to nothing, and get full WTC.

Very pleased for you that you were awarded WTC. This problem about HMRC wanting you to earn the min wage really needs to be ironed out by the government. I rang Tax Compliance again today, and assured the chap who took my call that my writing business WAS one on which I was working 30hrs pwk, and while he said to send in the documents attesting to this, he still said about this precondition of having to earn the min wage. It is a damn nuisance, as it is a big obstacle towards newly self-employed people who need all the financial help they can possibly get while they get their business of the ground.

dodger1

OP all your questions were answered here in your original thread:

https://forums.moneysavingexpert.com/discussion/4601553

Starting a new thread will not change the rules or anything else.

Truegho

dodger1 wrote: »

OP all your questions were answered here in your original thread:

https://forums.moneysavingexpert.com/discussion/4601553

Starting a new thread will not change the rules or anything else.

Sorry about that. I'd forgotten about that thread, to be honest.

superwoman4

Truegho wrote: »

Sorry about that. I'd forgotten about that thread, to be honest.

A thread 8 pages long and you forgot about it?

Truegho

superwoman4 wrote: »

A thread 8 pages long and you forgot about it?

I said I was SORRY. And there's no need to be sarcastic.

kerry3280

Actually I claim wtc for being a writer with a projected income of only 5k. In fact, I have a complaint going through the process as I was told back in january that I had to earn minimum wage and it turns out this is not at all the case. So to answer the OP question, YES you CAN claim WTC as a self employed author on low income.

MissMoneypenny

It's when tax credits are stopped and you are put onto Universal Credit, that your problems really begin. As self employed, you will be expected to earn minimum wage and that amount is what your claim will be based on.

sulkisu

Truegho wrote: »

Is this precondition that a new business MUST be earning the MINIMUM WAGE before any claim for Working Tax Credit can be awarded?

I have just started my own business as a self-employed writer, but have been told by Tax Compliance that I may not get WTC because my business is not yet earning the min wage. But how on earth can a business be expected to earn the min wage if it is only just starting off???

Depends on the type of business, but many self-employed people start out earning MW at least. Prior to tax credits, I suspect that the vast majority did .