Working tax credits self employed

LONDONBOY123

nannytone wrote: »

is it just me or does this not sound like a business?
there is little stock available, and he doesn't sell the stock he hholds in case he can't source any more?
so ge spends 40 hours a week trying to find stock ( over a 2 month period) and yet has only found £750 worth ( £375 a month) and hasn't sold any of it on.
i wouldn't want to invest in him

My clients business has been considered viable as he has had the business signed off and approved by an external provider contracted by the DWP ( Job centre )

NYM

LONDONBOY123 wrote: »

My clients business has been considered viable as he has had the business signed off and approved by an external provider contracted by the DWP ( Job centre )

Did he apply for the NEA Scheme ?

LONDONBOY123

Yes my Client is on the NEA Scheme.After advice from a few sources he was told that the business would qualify for WTC hence he has gone ahead with the business. IF WTC is refused then the business will have to cease trading and will have to go back on JSA until a employed position is found. Shame really as he doesnt want a life on the dole.

A loan from a bank or the NEA loan is not possible due to adverse credit rating, which resulted from him being unable to pay his debts after losing his job. Catch 22 situation

tomtontom

LONDONBOY123 wrote: »

Yes my Client is on the NEA Scheme.After advice from a few sources he was told that the business would qualify for WTC hence he has gone ahead with the business. IF WTC is refused then the business will have to cease trading and will have to go back on JSA until a employed position is found. Shame really as he doesnt want a life on the dole.

A loan from a bank or the NEA loan is not possible due to adverse credit rating, which resulted from him being unable to pay his debts after losing his job. Catch 22 situation

You miss the point - would he pursue this route if he did not have tax credits to fall back on? If you were advising him in a professional capacity would you agree it was viable?

ohreally

The sooner WTC is brought to an end the better. Most abate used to prop up business models that are propped up by tax payers supporting low wage employers or inviable self employed schemes like this one.

LONDONBOY123

No he would not have started this business without the WTC payments.As the business plan was produced taking the WTC payments into account for the cashflow.

WORKING TAX CREDITS THE BUSINESS/CASHFLOW IS VIABLE

NO WORKING TAX CREDITS THE BUSINESS/CASHFLOW IS NOT VIABLE.

tomtontom

LONDONBOY123 wrote: »

No he would not have started this business without the WTC payments.As the business plan was produced taking the WTC payments into account for the cashflow.

WORKING TAX CREDITS THE BUSINESS/CASHFLOW IS VIABLE

NO WORKING TAX CREDITS THE BUSINESS/CASHFLOW IS NOT VIABLE.

Then you have your answer - the plan is not viable. A business cannot be built around benefit dependency.

LONDONBOY123

It is only not viable if the WTC payments are not included in the business. However, the business was only started as it was confirmed by the Job centre that the business would receive these payments hence the business was started.

dktreesea

ohreally wrote: »

The sooner WTC is brought to an end the better. Most abate used to prop up business models that are propped up by tax payers supporting low wage employers or inviable self employed schemes like this one.

If the NMW were sufficient to live on, WTC wouldn't be needed. Keep in mind by and large it's employees who claim it, not the self employed.

dktreesea

tomtontom wrote: »

Then you have your answer - the plan is not viable. A business cannot be built around benefit dependency.

Seriously? Which country do you live in? That's the rest of the world you're referring to, not here.


People, say, going from DWP and job seekers allowance to self employment are often doing so to protect their current benefits entitlement. Keep in mind these people usually have very little capital to invest. So the viablitiy of their business in the early stages is likely to be marginal at best.