Working Tax Credits - Confused.

John_In_Lincs

It's Crunch Time!

I am trying to get myself back into work. I have been testing the water trying my hand at door-to-door selling, which looks very promising. It's not what I want to do (I hate the thought of door-to-door selling) but needs must. I would also like to take on a part time job, but in a small holiday town, out of season, the prospects are not good. I doubt very much that I will be able to find anything which will pay above the minimum wage.

According to the government website, Working Tax Credits for my age (I'm almost 57 and live alone. No children. No dependants.) it states that the maximum WTC I could receive is £850 per year! That's little more than £15 per week! That's shocking! WTC used to be almost £100 per week when I last received it. What on earth is going on?

I just used the Working Tax Credits online calculator to see if it made any more sense, and that stated that I could receive as much as £213.11 every four weeks! I am confused.

If I do two jobs: One part time for an employer and the other as a self-employed (very) small business, does this affect the WTC? i.e. In my case, I presume that the qualifying criteria for WTC is the number of hours worked, as opposed to the kind of work I am doing.

Can somebody please tell me if I've got the above correct please? It scares me to think that I could be doing this and end up much worse off.

Thanks.

John.

Darksparkle

Unsure if you are reading the gov site incorrectly or there is an error on a page somewhere, the maximum wtc a single person over 25 but under 60, no children or disabilities and working at least 30hrs per week is £2,770

https://www.gov.uk/working-tax-credit/what-youll-get

You can work as many hours or jobs as you like. The total number of hours must be at least 30, after that it will depend on your income. Claiming as employed is fairly straightforward however with self employed you need to meet the criteria mentioned here - https://www.gov.uk/working-tax-credit/eligibility

John_In_Lincs

Thanks Darksparkle.

You say 2,770. That agrees with one of the figures which I found:

£2,770 / 52 = 53.27 (per week) x 4 = £213.08 (per month).

Heaving a humongous "SIGH OF RELIEF! I thought this was another government cutback they'd buried under other news.

Thank you!

Caz3121

how much of the maximum you will receive will depend on your income last tax year and estimated income this tax year

John_In_Lincs

Why has lat tax year got to do with this tax year? That seems unfair. So, in that sense, what I earn now would be assessed next tax year. Therefore, are they intending to tax me twice?

Caz3121

the award is based on the previous years income unless this years income is expected to be + or - £2.5k. If your income was much higher last year then the award would be based on this years income + £2.5k
so if last year £20k and this year expected to be £12k, they will base the award on an income of £14.5k
this works in the reverse also, if last years £12k and this years £20k they would base the award on £17.5k

John_In_Lincs

I'm sorry. Try as I have, I cannot get my brain cell around that one.

Darksparkle

What exactly do you not understand about it?