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Legal, pensions and money

Self employed and working tax credit??

(5 Posts)
Kateykrunch Mon 15-Aug-16 15:01:57

I overheard this senarious - can it be correct?
60 year old woman with 63 year old husband, no income except husbands private pension of around £6,000 per annum, currently living on their savings which are running out fast, will turn her hobby into a 16 hour per week job, expects to make around £3,000 pa profit from the job, will register for tax and ni as self employed and will claim working tax credit.

gettingonabit Mon 15-Aug-16 15:10:20

Yes, I think it's correct.

I have a friend who claims she's an "artist". She claims tax credits.

I think you're eligible to claim if your savings dip below a certain level.

Anniebach Mon 15-Aug-16 15:11:15

There were changes last year Katey. Now the self employed will be assessed for tax credit on the previous years profits. They also have to work regular hours and I think this will have to meet with the minimum wage . They are below the tax threshold ,not sure about NIC

daphnedill Wed 07-Sept-16 21:28:01

When they are transferred to Universal Credit (some areas already have) they will get nothing. It will be assumed that they are working full-time and receiving at least national minimum wage. Meanwhile, their savings will be assessed and it will be assumed that they are receiving a ridiculous amount of interest (can't remember offhand what it is). They will both have to be working to receive working tax credits.

jenpax Sat 17-Sept-16 10:23:40

I think in fact as he is over the age a woman would currently be able to claim her state pension (incrementally rising currently around 62) they would be eligible for pension credit instead of her having to go down the working tax credit route. The new Universal credit as someone has already said will change the rules but as things stand most people are not in full service delivery areas.