Tax Credit Min Wage Precondition - I Need Advice

Truegho

sulkisu wrote: »

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 .

For every self-employed person who is actually earning the "minimum wage", there will be thousands that are not. You can't just start a business and expect it to be earning the min wage from Day One. Those who have managed to achieve this must be very, very lucky indeed.

nannytone_2

you cant expect a new business to be making a profit from day one .....
but with something like writing ( presuming you get paid for the work you do with minimum outlay) could be done as a part time job until you can establish a demand

pinkypoopydoo

Tax Credits don;t actually expect you to be earning NMW from day 1. What they do expect is for you to have a realistic business, with the scope to grow, and to build to AT LEAST NMW within a reasonable amount of time. I was asked about what exactly I was intending on doing, as well as my projected figures. I was asked if my projections were generous or realistic. I was asked if I had had a business plan looked at, and accepted in respects of NEA.

skateykatey

It is right that MNW from day one isnt necessarily the be all and end all however it will remain part of the decision making process.

The issue is that, for far too long now, claimants have been using WTC as a means of supporting their 'hobby'.

I recall one chap working on a sculpture for 7 odd years and it was still nowhere near completion, why should the state effectively supplement that.

The onus is for the customer to prove that the business model is realistic.

Writing, as someone has pointed out, particularly with Kindle's etc which has opened up the scope for self published works can be done alongside a PT employed job until some cash is generated from it. I personally don't see that as being unreasonable.

Housing_Benefit_Officer

I deal with a self employed painter. His parents have subsidised him to the tune of tens of thousands to buy canvass and paints and to hold exhibitions etc but in 7 years he hasn't sold a thing (perhaps it is his unrealistic price tags of £2,500 for an A5 oil to £45,000 for a massive oil). He refuses to drop his prices where ordinary people could buy his works and the state has subsidised his 'hobby' with tax credits, housing benefit and council tax support since he left college.

Was trying to find a link to his very expensive website.

He doesn't have a viable business - he has a state funded hobby.

I might add his paintings are very very good but his prices are ridiculously high but every year he says I only need to sell a big picture and I can come off benefits...

Universal Credit will hopefully get rid of these 'fake' state subsidised bogus self employed and make people take a reality check and find 'real' and profitable work.

gingergee

My hubby started off SE after college (electrician) earning zilch. We got maximum of everything. Slowly, with patience and a LOT of hard work and good advertising he is now stood at 24k profit in last 6 months!! Its been a pleasure ringing up HB and TC and telling them things have changed. Each time they have actually said well done. Things will dip in winter of course, but if you put the effort in, you reap the rewards.

Genuine business' have nothing to fear with TC and UC. Its those who are using hobbies as jobs that are in trouble x Good luck

Truegho

I should stress that my business IS a genuine one. I have registered with HMRC as a sole trader, the sales of my Kindle books are continuing to rise. And with each new book I put out, my readership grows. So to anybody here who still thinks writing is not a viable business, think again. Mine certainly is.

Housing_Benefit_Officer

Truegho wrote: »

I should stress that my business IS a genuine one. I have registered with HMRC as a sole trader, the sales of my Kindle books are continuing to rise. And with each new book I put out, my readership grows. So to anybody here who still thinks writing is not a viable business, think again. Mine certainly is.

So when does your business plan or projected sales in ebooks show your income will be at such a level you won't need to claim benefits any more? 2020? 2030?

BIGBRO_2

Housing Benefit Officer

"Universal Credit will hopefully get rid of these 'fake' state subsidised bogus self employed and make people take a reality check and find 'real' and profitable work."

Might want to line them up and get rid of them at the same time eh? I wouldn't mind seeing this painters site, so if you can post that instead of spouting hate, I would be most pleased

BIGBRO_2

You don't have to prove yourself to anyone, at the end of the day you 'ARE' entiltled to that money so go and get it. They the HMRC and individuals on here should not pigeon hole people because of their chosen profession, its totally wrong. Go and get whats yours, this government taxes every thing we purchase, earn or save, they would tax air if they could.