Need advice for my 65yr old Dad - working part time

einna_2

Hi there,

I'm wondering if anyone can help, my Dad is really confused about working and tax.

He's currently a self employed window cleaner & has been for about 30 years.

He used to do his own books but got an accountant last year due to getting increasingly muddled (he's having tests for Parkinsons atm)

The current dilema is that he is now only working about once or twice a week, he earns about 25£ a day. He finds it difficult to get up in the morning, the jobs require him to get up at 6am & take an hours tube travel into central london with buckets, ladders etc. He suffers from depression, has been hospitalised many times in the past so he often cant get up the in morning & misses booked jobs.

He loves working though as it helps with his depression so he not ready to give it up but I wonder if he should be paying tax & for an accountant when he's only working once or twice a week & earning little. The jobs are generally cleaning peoples houses & some little shops. He puts a card in newsagents windows.

The accountant is £300 per year and my Dad never seems to know exactly what he's earned so it's always a huge stress trying to get figures to the accountant. There's always brown letters arriving which my Dad never wants to open as he panics, its often various things have not been paid and interest has accrued.

I think he earns between 100 - 200 pound a month,

He gets a pension & tax credits.

What should he do?

Sorry about the rambly post, just had a conversation with my dad about it & he got very upset & stressed so Im desperate for any advice. Tried googling but all so confusing!

Thank you!

Einna

Darksparkle

If he is going to continue to work self employed then he needs to continue to complete tax returns.

If he isn't fit for work he should discuss that with his GP. If signed off work he could consider claiming ESA (unless already on state pension?). Tax credits can continue for 28 weeks when off sick.

However for tax credits he needs to work at least 16hrs per week. If he's only working a day or two it sounds like he shouldn't be claiming now.

He only needs to pay tax of his total taxable income is over £10,600 (£11,000 from April). So that includes his pension and self employed income as well as any other taxable income.

He needs to pay Class 2 NIC if his profit is more than £5965 per year and Class 4 NIC if profit over £8,060.

Is there anyone in the family or any friends that could help in do his return instead of an accountant?

einna_2

Really helpful thank you!

He used to work approx 3 days a week, averaging 18hrs. He's having a bad spell with his depression atm so it's a lot less. I'm going to suggest he speaks with his GP then decide what to do work/tax credits wise.

If tax credits stop (I keep hearing rumours that this is imminent) and he ends up only doing 1 day per week would he still need to be self employed/pay anything?

He's almost 67, so I in the next year or two I can't see him doing more than a couple of jobs a month. Would he be allowed to earn £50 a month do you think (assuming tax credits end)

Thank you so much : )

einna_2

Also there isn't really anyone who can help him with his finances, his brother used to do it but died 2 yrs ago. Ive got a really busy intense job in A&E & a couple of little ones so I would struggle. He's happy to pay the accountant but I'm just worried about what he should do in the upcoming year if he ends up hardly working. Thank you

Darksparkle

It's up to him if he wants to carry on working or not, no one is going to make him work or stop him from working.

But if he is working then he is still self employed and does still need to be registered with HMRC as such and complete returns.

My post before tells you when he needs to pay any tax/NIC.

But if he is claiming benefits (like tax credits) he needs to meet the criteria for them. So if he isnt working 16hrs per week he needs to stop claiming. If he doesn't tell them, he'll be overpaid so it's important he updates them asap. WTC aren't ending as such but moving over to universal credits.

missbiggles1

Don't forget that "working" covers more hours than just when he's up a ladder cleaning windows.

agrinnall

In terms of the work itself wouldn't it make sense to look for customers who are local to where he lives? Travelling into central London with cleaning paraphernalia on the tube seems like it would add a lot of stress to every job.

xylophone

Is it safe for him to climb ladders?

Perhaps it is time for him to give up work and develop some outside interests to help relieve his depression?

einna_2

Yes that would seem the obvious choice wouldn't it.

I suggested the same thing to him a while ago & he told me that there is a local chap in this area that has been cleaning houses & shops for many years, my dad didn't think it was right to start trying to take his jobs.

Also my dad has been a window cleaner all his life, he's had the same jobs in central London for many years, when he was younger it was fine lugging all his tools in, it's just in recent years this has become an increasing struggle.

Over the years he's become friends with the people whose houses he cleans - mostly little wealthy old ladies whom he loves having a natter with, they make him tea & sandwiches - it's a bit of a social thing for them both.

He has lots of interests outside work. He loves culture & the arts, goes to several mental health community groups, he's in a choir, plays music & does pottery. The window cleaning however he will miss terribly, it's been his identity for so long, it makes him feel useful & good to be earning some money doing a hard days work.

It is time for him to give it up, physically & emotionally it has become too much. I just wanted to help guide him correctly through reducing his work & doing the right thing according to tax etc.

I think after the advice I've received on here I may suggest to him to end his working tax credits. If he does this but continues doing the odd window cleaning (say once or twice a month) would he need to still be registered with HMRC?

He's very proud & other than the tax credits has never asked for anything. However he has multiple health concerns (physical & mental) Im a dr so will be looking at what may be available to him financially as I'm sure he would fit the criteria he has just been so reluctant to access help previously.

Thanks everyone for the advice

kidmugsy

Has one of his little old ladies perhaps got an unused cellar where she'd let him store his tools in central London? After all, it would be to the advantage of both.

missbiggles1

kidmugsy wrote: »

Has one of his little old ladies perhaps got an unused cellar where she'd let him store his tools in central London? After all, it would be to the advantage of both.

I was going to suggest he proposed to one of them!