Comments on: Claiming Working Tax Credit Instead of Job Seekers Allowance/Income Support

By: Martin

Martin — Mon, 05 Jul 2010 02:05:02 +0000

This is a really inspiring string of comments; I was made redundant last week aged 42 and rather than run the DWP gauntlet I have, after reading this, decided to go down the self employed route and claim WTC.

I have a small business idea which if I have time at home to grow and devlope (whilst recieving working families tax credit) has the potentail to grow endlessly.

It all sounds too good to be true, claining WTC for staying at home developing a business – especially if I claim for 30hrs per week. Plus I have two small kids.

The down side is that I’ve just lost an extremely well paid job so Im gonna miss the income but the dividends are good, i.e. it allows me a chance to make something of myself, developing MY idea, plus having more time at home with the family – The sky is the limit.

Thanks agian for the inspiration.

By: Millionaire Wannabe

Millionaire Wannabe — Thu, 20 May 2010 18:15:28 +0000

The working tax credit and child tax credits you’ve been getting I think are different to the working and child tax credits you’d get if you went self-employed (assuming that’s your plan).

If you’ve already gone self-employed you wouldn’t apply for JSA, I would assume you’d contact the agency dealing with tax credits and have them send new claim forms for working tax credit etc… based on self-employment. I understand the system has changed since I used it years ago, they’ve created various subsets for claiming tax credits, when I claimed it there was tax credits and disability tax credits which covered everyone (self employed or working for an employer).

David

By: julie

julie — Thu, 20 May 2010 04:56:49 +0000

I have just left my job, was working 20hrs per week. As a single mum of two kids aged 17 and 12 – can i still get child tax credit without having to reapply for jobseekers allowance? i do find it easier to sort my own life out without running in for weekly meetings and being offered ridiculous jobs and having to supply proof that i applied for them. I know i obviously cannot continue to get working tax credit but are they going to stop the child tax credit?

By: Lol

Lol — Tue, 04 May 2010 12:06:39 +0000

A disability element can bump the WTC up even more. People shouldn’t be too proud on their form to put that they have a disability. It works for them and not against them.Single working men can also claim WTC.
I used to work in the job centre a few years ago

By: Dave

Dave — Tue, 20 Apr 2010 22:25:02 +0000

I’m thinking of doing this with my blog, but does HMRC need proof that you are working more than 30 hours a week, so you can get the full entitlement?

How would they know how long it takes you to write a few posts, and how could you prove it?

By: Millionaire Wannabe

Millionaire Wannabe — Tue, 19 Jan 2010 16:27:36 +0000

Good luck with your online business, check out some of my other sites for free SEO information to increase your search engine traffic, in particular these:

http://www.seo-gold.com/seo-tutorial
http://www.google-adsense-templates.co.uk/seo-tutorial-for-wordpress
http://www.seo-consultant-services.co.uk/

Had a quick look at the Working Tax Credits and Child Tax Credits rules at http://www.hmrc.gov.uk/TAXCREDITS/payments-entitlement/entitlement/how-worked-out.htm and the current numbers are:

If you only qualify for Child Tax Credit the income limit is £16,040. If your income is more than this, the child element will be reduced. But your income can be up to £50,000 before the family element is reduced.

Looks like there’s a lot of scope for claiming even for those earning up to £50K. I think the Conservatives plan to change the rules if they win the elections, so less families can claim.

There’s a calculator at http://www.workingfamilies.org.uk/asp/calculator/

I ran an example through the calculator (couple, one child, no to most questions) earning £13,000 taxable income this/last year and got:

£90.88 a week.

Couple with no children on £13K and it’s £37.57 a week.

Single with no children on £13K and it’s £1.89 a week. Not much, but does entitle a person to free prescriptions etc…

If you are earning around £13K it might still be worthwhile claiming tax credits (no harm trying), especially if you have a partner and/or children (I think I saw kids as old as 20 count?).

The above tax credits calculator is very good, it’s mostly yes/no questions and you can change your answers at the end as many times as you like to see what different circumstances would result in.

David

By: Margarita

Margarita — Tue, 19 Jan 2010 15:03:56 +0000

Great source of information!!! I am in a similar situation, just being made redundant from my main job, but run my own shop online and textile business. But I am not entitle to any JSA, due to still be self employed, or Tax credit, as my last year earnings were more than £13.000. Funny how this system doesn’t work at all!! That means I won’t have enough money to pay house, bills etc…but earn more than enough to claim any help!! I reminds positive, and lets hope my business takes off.
I will keep reading your great site.
Regards
Marga

By: Rozism

Rozism — Wed, 13 Jan 2010 17:31:21 +0000

This is a really useful article, thank you. I’ve just signed off JSA and in process of trying to claim WTC and HB as a self-employed musician / music teacher, took me months to realise these options, they seem too good to be true. In the process of setting up my own music websites which still seems daunting but your advice is really helpful.

By: Charlotte

Charlotte — Thu, 31 Dec 2009 14:47:19 +0000

Great article- I’ve been on income support forever and just assumed that all state support would be taken away if I ever became self-employed. The only option ever discussed at work-focused interviews ( every 6 months at the Jobcentre) was paid employment, which in my case is not a realistic option given lack of transport and childcare, crap CV, recession etc. Last time at the Jobcentre I wanted to discuss self-employment but was fobbed off with ‘there’s really no point talking about it unless you’re planning to start work immediately’. Duh, when the whole point of asking is so I know in advance what to expect to happen to my benefits, and thus whether the whole plan is feasible! I think a lot of lone parents would set up a home-based business tomorrow if they knew it was likely to be feasible. As you say, we all have something we could do. Always easy to blame the government, but if the DWP made it easier to get information specifically on setting up a business when on JSA/IS etc, and if the Jobcentre staff were trained to encourage and support this aspiration instead of pouring cold water on it, there might be fewer of us feckless spongers around and more successful entrepreneurs! Just a thought

By: scott

scott — Sun, 27 Dec 2009 04:28:51 +0000

re: my question above, from what i can find out, it seems that housing benefit is only affected if part of the home is being used for business exclusively (like a separate office).