Self employed painter refused working tax credits help

John157

Hello,
I'm 31, single and working well over 30 hours a week as a self employed painter and decorator. I've only just started working for myself on 20th of June 2016 after time on jsa. Unable to find work with support from family I'm happy to be doing something to get bank into work and make a go of things.
I applied for working tax credits as I thought they was supposed to help working people on low incomes. I've been refused tax credits because (in there words) I'm unable to confirm that my self employment is organised and regular, commercial or profitable. And I'm not entitled to tax credits as a self employed person. But I can guarantee they'll be expecting me to pay tax on my self employed earnings.
I understand my business is in early stages but I'm getting bookings in things are looking good and if I can earn a miserable £100 a week, I'm £30 a week better off than what they expect you to live on jsa.
I thought tax credits was there to help people like myself so I'm bitterly disappointed with this decision, what can do? Is this worth appealing and if so what do I need to do and provide?
Many thanks'

Ames

Yes, you can appeal. You need to provide a proper, robust business plan that shows you will earn at least minimum wage for the hours you're claiming you work within a reasonable timeframe.

Alice_Walker

If you're working 30 hours as a decorator and only earning £100 a week then there's something wrong with your business model. How much are you charging per day/ job?

Icequeen99

Ames wrote: »

Yes, you can appeal. You need to provide a proper, robust business plan that shows you will earn at least minimum wage for the hours you're claiming you work within a reasonable timeframe.

Not necessarily - there is no NMW test in tax credits.

You need to show it is commercial, with a view to realising profit and is organised/regular.

OP - yes you should appeal and get some help.

IQ

John157

Alice_Walker wrote: »

If you're working 30 hours as a decorator and only earning £100 a week then there's something wrong with your business model. How much are you charging per day/ job?

I'm just using that as a worst case scenario example.
Surely any kind of work is better that sitting on that soul destroying jsa.

Alice_Walker

John157 wrote: »

I'm just using that as a worst case scenario example.
Surely any kind of work is better that sitting on that soul destroying jsa.

Absolutely, but if you're still wanting benefits then you need to fulfil the given criteria. If you are stating that you're working 30 hours a week then your earnings should reasonably reflect that and (as an example) £100 would not. What have you declared your estimated earnings for the year to be? What rate are you charging? These are all questions that need to be addressed (with HMRC) to qualify your business as a viable entity.

parkrunner

John157 wrote: »

Hello,
And I'm not entitled to tax credits as a self employed person. But I can guarantee they'll be expecting me to pay tax on my self employed earnings.

I doubt WTC would be very much if you end up having to pay income tax.

Darksparkle

If you are only earning £100 per week you wouldn't be paying any NIC or tax. Not that it's actually relevant for claiming tax credits.

skintandfat

You should be able to prove you are a business


Do you have a business bank account?
If not set one up- several banks offer this with 24/36 months free banking


Do you have wholesaler bills made out in your trading name?


Do you have business cards, letterheads and invoices?


Does your business have a website / facebook page?