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Working Tax Credits?

by cooler1
6 replies
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Anyone here who lives in the UK and does IM solely as their income source, do you claim working tax credits?

According to this site you can claim working tax credit even if you are self employed. However, it states that you need to work at least 30 hours per week. So due to the nature of IM not being set hours like other types of self employment, can you still claim this benefit and would your monthly earnings need to be a certain amount to qualify?
  • Profile picture of the author LynnM
    Yes, you can claim if you're a self-employed IMer. Tax credits are based on your annual income, not monthly. If you're single with no children and earning under £13000 a year, you'll likely qualify.

    30 hours a week is only 4 hours a day and it can include research time. You can get much more detailed info at the HMRC site:
    HM Revenue & Customs: What are tax credits?
    HM Revenue & Customs: How to work out usual working hours for your tax credits claim
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    • Profile picture of the author cooler1
      Originally Posted by LynnM View Post

      Yes, you can claim if you're a self-employed IMer. Tax credits are based on your annual income, not monthly. If you're single with no children and earning under £13000 a year, you'll likely qualify.

      30 hours a week is only 4 hours a day and it can include research time. You can get much more detailed info at the HMRC site:
      HM Revenue & Customs: What are tax credits?
      HM Revenue & Customs: How to work out usual working hours for your tax credits claim
      Thanks for the info.

      Do you have to earn a minimum amount of money on an annual basis to be able to qualify to claim it? As I imagine for example that someone earning about $25/week writing articles wouldn't qualify to claim it.
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      • Profile picture of the author seasoned
        Originally Posted by cooler1 View Post

        Thanks for the info.

        Do you have to earn a minimum amount of money on an annual basis to be able to qualify to claim it? As I imagine for example that someone earning about $25/week writing articles wouldn't qualify to claim it.
        It wouldn't make sense that there would be a specified minimum. Lynn said UNDER. This SOUNDS like it is like the US EIC. In the US, a person making $100USD, in the US, would get an Earned Income tax credit of $10!!!!!!!

        Steve
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      • Profile picture of the author LynnM
        Originally Posted by cooler1 View Post

        Thanks for the info.

        Do you have to earn a minimum amount of money on an annual basis to be able to qualify to claim it? As I imagine for example that someone earning about $25/week writing articles wouldn't qualify to claim it.
        No, as long as you're actually working and earning under 13 grand there's no problem.
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        • Profile picture of the author cooler1
          Originally Posted by LynnM View Post

          No, as long as you're actually working and earning under 13 grand there's no problem.
          OK.

          I just came across this thread. Someone says "Writing online is a bit of a grey area in my experience for tax credits. It very much depends on what type of writing you are doing, how you will get paid and whether there is a real expectation of payments."

          I do affiliate marketing, not writing articles online, but I imagine that would be similar to writing. Have you claimed WTC yourself, as an affiliate marketer?

          Also, what is deemed as taxable profit? This thread says "As of April you will have to show taxable profit equivalent to the National Minimum Wage for the number of hours you say you are working - and it has to be over 24 to get tax credits."

          Is taxable profit any amount which you declare as earnings from self employment? If it is then that means you would need to earn at least £9843 per year to qualify to claim WTC, because the minimum wage is about £6.31/hour then times that by 30 (the minimum number of hours to qualify).
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          • Profile picture of the author LynnM
            Hi Cooler, I wasn't aware of that new ruling, so you'd be best to ask HMRC for advice - they're quite approachable!
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