Working Tax Credit

swward99

I'm newly self employed, working at home. I get Working Tax Credit as I claim for over the 30 hours per week. At the moment I take no wage from the business, how do I stand when updating the claim form this year re income?

Conor_3

I take it you're a sole trader, not a director of a Ltd company?

If that's the case, the profit you make is your income, regardless of whether it is sat in the business account, until it is spent on business related activities. You need to work out what you expect the profit to be in this financial year and tell them that figure. If you expect it to be a loss or zero profit, which is perfectly acceptable for the first trading year, tell them zero.

If you're set up as a Ltd company, it may be more difficult because it would be expected that you would be paid NMW from that company whether or not its in profit but I'm not exactly sure how this would work in this respect as I'm a sole trader so I'll let others comment.

You may also be entitled to Income Support/HB/CTB whilst you've not got any income but it'll depend on the level of WTC you get. You'll be required to submit accounts to the IS/HB people on a regular basis so keep on top of them.

Good luck with it.

swward99

Thanks, makes sense, I know we need to speak to our accountant about all this when we have time.