Worling tax credit and minimum earnings

joshly

Last week I was awarded working tax credits, I am a single male, over 25 and working 30 hours a week as self employed.

I know there is a threshold of £6430 a year and then credits are reduced but is there a minimum I must earn to qualify for the credits?

So far I have earnt about £80 a week but that will grow in time as my client base expands.

I just wondered if my working tax credits will be taken away as I am earning well under the minimum wage at the moment.

Darksparkle

Would be worth you reading here - https://revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/self-employed/

joshly

Thanks for that link, it was informative but I found it quite difficult to understand.

As I have to work 30 hours a week to qualify for WTC and should earn the minimum wage of £7:50 per hour, I would need to earn £225 a week to make my business viable in their eyes.

But if I did earn £225 over 52 weeks I would not qualify for WTC as it is reduced from earnings over £6430 per annum.

Darksparkle

joshly wrote: »

Thanks for that link, it was informative but I found it quite difficult to understand.

As I have to work 30 hours a week to qualify for WTC and should earn the minimum wage of £7:50 per hour, I would need to earn £225 a week to make my business viable in their eyes.

But if I did earn £225 over 52 weeks I would not qualify for WTC as it is reduced from earnings over £6430 per annum.

Yes it would start to reduce but it wouldnt stop entirely until approx £13,000