The Rich Got Richer?

michaels

I thought it was also the case that for benefits purposes self employment would be treated as earning NMW?

wotsthat

michaels wrote: »

I thought it was also the case that for benefits purposes self employment would be treated as earning NMW?

People can still declare income less than the minimum wage but will be subject to further scrutiny.

For example, where a claimant is required to normally work 16 hours a week to qualify for working tax credit, they will be expected to earn 16 x national minimum wage. (You can find the national minimum wage rates in our national minimum wage section). If they are not earning that amount, then HMRC will ask the claimant to provide evidence that they meet the requirements of the new test. The evidence asked for may include things such as business plans and other business records (see HMRC’s Helpcard).

Pity it's taken more than a decade to tighten this up even though the unintended consequences have been obvious for so long.

gazwaldo8

Tax credits is the main income for most of the people employed there.

That's how it's abused. Put the job up at NMW, with the right hours and people will flock to it. The wage itself is of little relevance to those these jobs are aimed at. It's the times for most and the correct amount of hours.... tax credits and housing benefits etc will do the rest.

It certainly appears that the National wage for many people IS whatever the Tax Credits / HB and whatever other benefit they can claim!

I hear time and time again how many want to go into work and many good workers want to go 'Full time' but simply cannot afford to come off the benefits they currently receive!

This is just an obscene situation and completely wrong - no wonder we have become a benefit state.

PasturesNew

Graham_Devon wrote: »

I've heard of people delivering parcels in their own car on a self employed basis for up to 3 hours a week. That then, so long as they are self employed entitles them to all the tax credits and other benefits etc.

Is Avon being used in the same way? That used to be simply a way of getting some pocket money!

Anything/everything is used. New UC is intended to stamp it out as it's not really self-employment, not making a profit, just in it for the top-ups. Effectively, work for free for an hour and put in a claim for ££££s.

ukcarper

Just put unemployed single person claiming job seekers and a self employed person working 16-29 hrs earning £100 a year through entitled to website and if I've not made a mistake unemployed person gets more he will have to prove he is looking for work though.

lisyloo

JSA only last 6 months though.

kabayiri

It's worth remembering that people were being encouraged to choose self employment by the Work Program provider companies who were being paid by employment results!

If you introduce a defective system, do not be surprised if it delivers poor results.

ukcarper

lisyloo wrote: »

JSA only last 6 months though.

I'm not sure that's right contribution based job seekers only last 6 months after that you can claim income based job seekers.