Self employment and WTC

Dullville

In a full service area.
Currently receiving IB JSA with SDP( £180 per week) and high rate DLA care.
In the new year been offered the opportunity of 2 days a week employment but on a self employed basis, they will pay a set amount per hour for 16 hours a week but would personally have to pay tax and NI themselves.
Obviously as she’s receiving SDP she is single and lives alone.
Will she be able to claim WTC as she’s in a full service area or will she have to apply for UC?
Is it a simple process to claim WTC if eligible?
Thanks.

Darksparkle

Why is it employment but on a self employed basis? Will she genuinely be self employed or is the “employer” just trying to avoid taking her on as an employee and giving the rights associated with being one.

pmlindyloo

I suggest that the information is put into a benefits calculator e.g https://www.turn2us.co.uk as this claimant may be worse off claiming Universal Credit because they will lose the SDP because this would be natural migration with no transitional protection.

Claiming WTC is one of the changes that will trigger a claim for UC in a full service area.

https://www.southampton.gov.uk/benefits-welfare/benefits-advice/universal-credit/trigger-universal-credit.aspx

poppy12345

pmlindyloo wrote: »

The alternative is to find work for under 16 hrs at NMW, remain on ESA and seek permission for the work to be done under the Permitted Work rules.

The OP is claiming JSA and not ESA.

Dullville

Darksparkle wrote: »

Why is it employment but on a self employed basis? Will she genuinely be self employed or is the “employer” just trying to avoid taking her on as an employee and giving the rights associated with being one.

I think it’s because the employer sees it as a bit of a trial to see how she get on/copes with returning to work.
He’s has assured her she will go on the books if she gets on ok with more hours if it goes ok.
There’s nothing shady or dodgy as it’s a relative ( in law) of my friends sister whose company she has been offered the job in.

pmlindyloo

poppy12345 wrote: »

The OP is claiming JSA and not ESA.

Sorry! Will delete post.

Darksparkle

Dullville wrote: »

I think it’s because the employer sees it as a bit of a trial to see how she get on/copes with returning to work.
He’s has assured her she will go on the books if she gets on ok with more hours if it goes ok.
There’s nothing shady or dodgy as it’s a relative ( in law) of my friends sister whose company she has been offered the job in.

I’m sorry but you dont become self employed just because you do a trial. You also can’t pick and choose whether to be employed or self employed but it is determined by the terms of the engagement.

Being a relative doesn’t mean there’s nothing dodgy about it.

Will she have control over when and how she works? Who will provide any tools she will require for the job? Can she send a substitute in her place? Will she have the right licenses or insurances required for the work?

Dullville

Darksparkle wrote: »

I’m sorry but you dont become self employed just because you do a trial. You also can’t pick and choose whether to be employed or self employed but it is determined by the terms of the engagement.

Being a relative doesn’t mean there’s nothing dodgy about it.

Will she have control over when and how she works? Who will provide any tools she will require for the job? Can she send a substitute in her place? Will she have the right licenses or insurances required for the work?

Thanks for your reply.
It’s just a bit of office work I believe, filing, answering the phone etc.
I see where your coming from but I can see where the employer is coming from as well.
Why should he go through all the hassle of setting her up on the payroll and with HMRC and she doesn’t go back after 1 day?
It’s a well respected company in the local area.
The arrangement will be that she invoices him for the work she’s does and he will BACS the money into her account so there will be a paper and electronic trail.

Darksparkle

Dullville wrote: »

Thanks for your reply.
It’s just a bit of office work I believe, filing, answering the phone etc.
I see where your coming from but I can see where the employer is coming from as well.
Why should he go through all the hassle of setting her up on the payroll and with HMRC and she doesn’t go back after 1 day?
It’s a well respected company in the local area.
The arrangement will be that she invoices him for the work she’s does and he will BACS the money into her account so there will be a paper and electronic trail.

But she should go through the hassle of registering as self employed with HMRC, getting a UTR and completing a tax return? All of which would be a requirement to claim wtc.

Dullville

Darksparkle wrote: »

But she should go through the hassle of registering as self employed with HMRC, getting a UTR and completing a tax return? All of which would be a requirement to claim wtc.

Yep she’s aware she will have to register herself etc and she’s quite looking forward to sorting all her admin out herself, hopefully this will be a stepping stone into getting herself back into full time paid employment.
So if everything is done properly with HMRC she will be able to claim WTC then?

poppy12345

In a full service area she would have to claim UC not WTC. As stated in post #3.