Tax credit changes and self employment - How will it work ?

[raspberryroop]

Does anyone have any links to the new rules in 2013 or can explain them simpliy to me. Recently widowed and have had to reduce my hours but do more than 16. Thanks

I understand that they're going to try and close the loophole that allows the self employed to claim to be working 30 hours a week, thereby getting more tax credits whilst able to show accounts with virtually no profit.

I read somewhere that the government will expect to see equivalent of minimum wage income from the self employed or expect them to look for employment.

Well that's childminders completely done over then. I charge £3 per hour and have one child three days a week. So I work 30 hours but after expenses I earn about £2 per hour! Wonder if I will get any work at £7 per hour?

Bumping for interest. Has this come in yet?

I read that each person will get one opportunity to setup as self employed. During this once in a lifetime chance they will receive benefit based on what they actually earn. After a set period, not yet defined, they will be expected to earn equivalent to min. wage or seek paye employment.

try this link for a calculator

to us have a more detailed explanation

Turn to us link didn't work particularly interested in this as DH is being made redundant and when the redundancy has gone through he is going to start self employed work m.

I am sorry to hear about your loss. Unfortunately nothing is certain yet: the proposals are here but they are not very easy to follow. Consultation on these proposals ended in July and the regulations will be published later in the year. There was a significant amount of negative response to the proposals for the self employed so there may well be changes, but "introducing a floor of assumed income from self-employment" is a key aim of the government so it seems likely that most people will be treated as earning profits of at least 35 x the National Minimum Wage each week. This will replace the requirement to work a minimum number of hours which was unworkable for the self employed.

And what if you're not earning that?

I don't get any Tax Credits anyway, I'm just curious!

Are they trying to drive the start up out of business or is there a grace period?

Then your Universal Credit payment for that month will be calculated as if you did earn that much (i.e. reduced by 65% of earnings over a yet-to-be-decided disregard).

There is a start-up grace period, probably 1 year.

I should also have mentioned that Universal Credit will only be introduced for people in work from April 2014, with a phased transition for existing claimants up to 2017. The regulations are due to be published in October; there is a pathfinder scheme operating in Tameside, Oldham, Wigan and Warrington from April 2013 which may result in adjustments to the regulations before national launch for new unemployed claimants in October 2013.

I think my brain just exploded, MrAnchovy.

Sounds like nothing will change for me anyway as my husband makes to much money for us to get anything but CB.

I hope IDS brain explodes too!