Huge Drop in Post Budget WTC for the Self Employed

staffsuk

Just thought I would run some figures through some of the online calculators following the budget.

It would seem that those who currently claim WTC and are self employed will be in for a massive drop in their WTC entitlement to the point that some will receive nothing even if their profits equal NMW.

For example: a single person over 25 with no dependants who is working 30 hours / week with a profit at current NMW (£6.50 x 30 x 52 = £10,140) would receive £1244.80 this tax year - but £0.00 for the next tax year.

I wonder how many are aware of this...

Deb__123

Yeep looking at losing about £840 next year while working over 30 hours for less than 6k per year.

No justice is there.. you try and work by whatever means you can... and get clobbered.

staffsuk

blondebubbles wrote: »

It's not just self employed effected.

Indeed blondebubbles - but those who are employed will see their income rise with the living wage.

pmlindyloo

Deb__123 wrote: »

Yeep looking at losing about £840 next year while working over 30 hours for less than 6k per year.

No justice is there.. you try and work by whatever means you can... and get clobbered.

Since you are earning less than NMW per hour then by the time these changes will have come into effect I am sure that your income will be either higher or you will have come to the realisation that your self employment is not a viable business.

staffsuk

curty510 wrote: »

or get an actual job that pays, instead of utilising the loop hole for SE. £6k a year? really? welcome to the real world

And for those that are earning the equivalent of NMW as in my OP?

beecher2

http://www.bbc.co.uk/news/uk-politics-21260331

I imagine a lot of the people who were encouraged to sell on EBay through welfare to work are in for a shock.

Gavin234

When will these cuts happen though? It's at least a year away right?

georgiasdragons

So looks like im going to lose £34 a week tax credit, but im on more than the national minimum wage so where do i get the extra money from to make up the loss of tax credits!!

I cant work more hours.

georgiasdragons

So it isnt just self employed that are effected as i am employed

staffsuk

Gavin234 wrote: »

When will these cuts happen though? It's at least a year away right?

Beginning of the next tax year AFAIK - i.e. April 6th 2016

shegirl

georgiasdragons wrote: »

So looks like im going to lose £34 a week tax credit, but im on more than the national minimum wage so where do i get the extra money from to make up the loss of tax credits!!

I cant work more hours.

Are you in rented accommodation? If so, housing benefit often makes up the shortfall for loss of tax credits, pound for pound or more.


The other most obvious options are: 1. Deal with it and cut your cloth, 2. Increase you income yourself