24 Hours x NMW for Self Employed - Implemented or Not?

staffsuk

Hi all

I read that from April 6 this year the self-employed claiming WTC will be expected to be generating a minimum net profit to the equivalent of 24 hours NMW per week - i.e. £156 / week or £8112 / year at the current rate. I'm not sure if holidays are allowed / taken into account with those figures?!

I also read that the self-employed declaring less than that threshold will be required to provide evidence to HMRC that the work they are undertaking is 'genuine and effective'.

Does anyone know whether that has come into effect?

It won't affect me as my annual net profit is above that threshold - but I wonder how many other people are aware of this proposal and if they will be affected?

Thanks!

Mersey_2

There's a start up period of up to 12 months where the minimum income floor will not apply. The start up period will apply if you are 'gainfully self-employed', started your current self-employment less than 12 months ago and have not had a previous start up in the last 5 years and are taking steps to increase your earnings.

Icequeen99

Mersey wrote: »

There's a start up period of up to 12 months where the minimum income floor will not apply. The start up period will apply if you are 'gainfully self-employed', started your current self-employment less than 12 months ago and have not had a previous start up in the last 5 years and are taking steps to increase your earnings.

You are talking about universal credit, the original poster was asking about tax credits.

OP - no it was not implemented like that. Instead the definition of self-employed was changed requiring the work to be on a commercial basis, with an expectation to realise profits and the work must be regular and organised. They will use the hours test internally to decide who to compliance check, but the actual test applies to all self-employed no matter their earnings.

IQ

patman99

This is the Conservative's response to the 750,000 people who became 'self employed' to move from JSA to WTC without having to lift a finger.

The Tories changed the rules in 2011 to encourage people to go self employed and the people with children and who rented were encouraged by the Jobcentre staff to make the move.

Now, they have realised their mistake and are going to 'encourage' those who have no intention of working to actually start working, or go back on JSA. Don't take an amount equal to 24 hours each week at NMW, then you won't get WTC.

staffsuk

Well I did wonder if they had the nerve to go through with the 24 x NMW proposal... I dare say they may well have been spooked by figures from HMRC with regards to the number (likely very high) who would fall below the threshold - and just how many would likely have jacked in SE and ramped up the unemployment figures.

Mersey_2

Yes, those are the rules for 2015/16 ie new Claimants in most areas cannot claim WTC. There is no such thing - it has to form part of Universal Credit.


If you attempt to claim JSA etc online - or request a WTC application pack - in most areas it will redirect a claimant to claim UC, by virtue of their post code.


The full guidance and Rules is only just being published ie in April 2015 and of course any new Gov't may review proposals.

Icequeen99

Mersey wrote: »

Yes, those are the rules for 2015/16 ie new Claimants in most areas cannot claim WTC. There is no such thing - it has to form part of Universal Credit.


If you attempt to claim JSA etc online - or request a WTC application pack - in most areas it will redirect a claimant to claim UC, by virtue of their post code.


The full guidance and Rules is only just being published ie in April 2015 and of course any new Gov't may review proposals.

The new rules for tax credits will apply to existing claimants as well from April.

IQ

Weary_soul

I believe you can still claim working tax credits as they are currently only accepting simple JSA claims so far.

It's just theses stupid new rules will apply from now on wether you're on UC or WTC.

shegirl

Weary_soul wrote: »

I believe you can still claim working tax credits as they are currently only accepting simple JSA claims so far.

It's just theses stupid new rules will apply from now on wether you're on UC or WTC.

I don't think they're particularly stupid given the amount of hobbyists who are ' self employed' or people who claim to be self employed purely to claim working tax credits.

One I've recently talked to (an annoying cow because she claims to be a jeweller and jewellery designer but what she actually is is someone who occasionally chucks a few beads of ready made,cheaply bought,mass produced silver plated pendant on cheaply bought,ready made,silver plated chains!!!) has been claiming WTC since the end of 2012,barely sells or makes anything,purely relies on Facebook and a couple of pieces in one shop,her 'marketing' consists of posting on her 'business' FB page that she's making a cup of tea,asking how everyone is and sharing other people's pages, and she actually 'works' less than a couple of hours a week. However,she will claim it's more than this because she posts stupid status' on her facebook page and make herself a new logo and is now trying to get a stupid book published (will never happen) which she classes as 'work'.

Her whole reason for doing all of this is that her LHA doesn't cover all of her rent but if she gets WTC she can cover the extra few quid a week and still be better off. She also has 5 kids,one on DLA, and is quite comfortable.

I have warned her..

Weary_soul

I'm sure she's thrilled you've chosen to take such an interest in her affairs.

shegirl

Weary_soul wrote: »

I'm sure she's thrilled you've chosen to take such an interest in her affairs.

Actually,she was sharing it to try and encourage another single mum to do the same so she'd have more money.

It's things like this,and there really are a lot of them,that are making the rules stricter