Clarity on Working Tax Credit claiming ability...

Mersey_2

Darksparkle is right.


The info the HMRC person gave you was incorrect. You can ask them to reconsider a decision (although it sounds as if you were just having an informal chat).


A flurry of letters went out last year from one HMRC (TC) office along the lines you were told, but it was simply incorrect (to insist that a NMW calculation negates a claim). It cannot and Darksparkle has provided the correct test. It's merely that low earnings will be a factor - amongst others - which may make them consider one claim more than others.


[PS Tax Credits cannot be 'sanctioned' by HMRC in the way the DWP do with JSA]

duff67

Mersey wrote: »

Darksparkle is right.


The info the HMRC person gave you was incorrect. You can ask them to reconsider a decision (although it sounds as if you were just having an informal chat).


A flurry of letters went out last year from one HMRC (TC) office along the lines you were told, but it was simply incorrect (to insist that a NMW calculation negates a claim). It cannot and Darksparkle has provided the correct test. It's merely that low earnings will be a factor - amongst others - which may make them consider one claim more than others.


[PS Tax Credits cannot be 'sanctioned' by HMRC in the way the DWP do with JSA]

Thanks.

If letters were sent re mis information, its sad that matters are still being quoted wrongly on helplines and through the chat function.

It's obviously the old comparison of a dept working to the ethos 'easy life' rather than 'helpful life' with a view to client advice.

It is much harder, I have found, to be treated fairly when not in 'a suit' as I have found myself dependant on the kindness of others and needing correct advice - just to get by.

andygb

I was told by a NEA advisor at the jobcentre last year, that I would only be eligible for NEA if they OK'd my business plan. When I told them what my proposed business was, she said - "Oh, there is a lot of competition in that sector", to which I replied - "There is a lot of competition in every sector".
They try to sanction you to get you off JSA, and then try to stop you setting up a business and claiming NEA.
What they really want, is for people to simply sign off and start making a profit straight away, which in the majority of cases is impossible.

FBaby

What they really want, is for people to simply sign off and start making a profit straight away, which in the majority of cases is impossible.

Or more like expect self-employed to be to take their own risk setting up their business as people had no choice to do in the past.

The reason for this is that too many people used it as an easy escape route to being on JSA. Instead of having a great idea of business and the skill, time, and knowledge to bring to fruition, it became more and more a case of 'I don't like having to explain myself weekly to get my benefit, what can I do to avoid it. Oh, setting myself up as self-employed, that's easy, I'll just sell a couple of things on ebay and that will tick the boxes to get tax credits and give me a peaceful life for the same money'.

annandale

It's not the same money though. JSA and Uc pay more than if someone was on working tax credits.

It can take 18 months for a new business to start making profit

duff67

FBaby wrote: »

Or more like expect self-employed to be to take their own risk setting up their business as people had no choice to do in the past.

The reason for this is that too many people used it as an easy escape route to being on JSA. Instead of having a great idea of business and the skill, time, and knowledge to bring to fruition, it became more and more a case of 'I don't like having to explain myself weekly to get my benefit, what can I do to avoid it. Oh, setting myself up as self-employed, that's easy, I'll just sell a couple of things on ebay and that will tick the boxes to get tax credits and give me a peaceful life for the same money'.

FBaby

There will always be the lazy and fraudulent individuals trying everything for the easy life - so with any application there has to be criteria which is developed from experience of the 'loopholes'

It is not the case on every occassion and some of us are genuine IMO.

As the OP, and speaking from my perspective, my employment was in banking for 29.10 years. I lent money to all sectors being personal, small business, corporate and multi. I understand criteria and also understand that a successful business is not the one who makes a profit (home made figures can say anything you wish them to), it's the business that forecasts sensibly.

With that in mind it's well within expectations to not make a profit for the first number of years as the business grows and purchases. I've lent 5 & 6 figure sums against intial loss making businesses against a strong management structure and accurate forecasting.

Having fallen foul of the Banks downsizing a few years ago, I now am 'no one'. I now appear to have no idea of structure, criteria or planning ability. I run the risk of a less experienced gov employee stating my plan and forecast are not sufficient to warrant £53pw !!.

Having paid a large amount of Tax & NI throughout my career, I have lived on £72pw for a number of years receiving regular 'over qualified' / 'more experienced than your potential line manager' statements from new job interviews, as a reason.

If no one else believes in me, I will employ myself as I believe in me & I am better than 'wishing to stay on benefits'.

Last Sept I returned to University to a short term 6month course in order to refresh my knowledge in SMall Business. I have created a business plan which has been accepted.

However, I need to earn £1 to invest £1 in the business. I cannot loose the only income I now have £72pw JSA in order for a centralised gov dept to question whether I qualify for £53pw.

You are right, there are chancers - but not everyone. I just need a realistic view of application where, what is acceptable within business plan in the 'outside world' is accepted in the tax world.

I have to remain hopeful

duff67

Thanks everyone for your input to my question.

All points much appreciated

FBaby

It is not the case on every occassion and some of us are genuine IMO.

Absolutely, feel sorry for the likes of you who are genuine, but paying for all those who abused the system.

andygb

I wish you the best of luck Duff67, I hope that you manage to set up your business, and get shot of the depressing organisation which is the DWP.

duff67

Darksparkle wrote: »

I thought it was £66 per week for 13 weeks and £33 per week for 13 weeks?

WTC max would be £53 per week.

Darksparkle - Just had my weekly visit to JobCentre & confirmed above as correct.

Apparently my understanding of the payments over 12/13 weeks rather than 26 was my misunderstanding lol. (Normally remember facts and figures very well so bit unusual !!)

Anyways you're spot on and thanks. Another step in right direction