Please advise me on freelance work and tax credits - I'm worried it's not worth it ...

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I have been out of work for some time and have recently split with my DH. We're not divorced yet, although it's in the process of going through. He's still in the house we jointly own - I moved out because he dug his heels in and just refused to go, and I couldn't stand being under the same roof any longer. I am now renting, with the DCs, and it's costing me a fortune. I don't qualify for housing benefit because in theory I have equity in the house, which we have tried to sell but didn't get any offers (last year).

My problem is this: I've been offered a few bits and pieces of freelance work, not much and not regular. £100 here and there. At the moment I'm getting child tax credits and my jobseekers' allowance has run out - again, can't get income support because of having 'savings' i.e. equity in the house.

I want to work, I don't want to rely on the state, but I just can't get a regular job that works around the DCs. I'm worried that if I take these odd bits of work, my child tax credit will go and, as I won't be doing enough hours to qualify for working tax credit, I'll actually be worse off.

Does anyone know how the tax office deals with freelance/erratic hours? It seems really unfair to be penalised for trying to work, but I'm starting to think it just wouldn't be worth it.

Would really appreciate any advice from people in a similar position (or tax credit experts). Thanks.

If your on a low wage you'll get help with childcare costs as well as WTC if you do 16 hours minimum so you dont have to limit your hours around the children.

The equity in the property wont count for tax credit purposes.

If your contributions based JSA is due to run out, you need to take pretty much any job with not qualifying for IS. If you go freelance, it has to be 16 hours minimum a week to qualify for WTC.

HappyMummy, thanks for getting back.

This is the problem, you see - if I take the freelance work, it's likely to be short-term projects. There are no set hours, it's just 'deliver it in two weeks'. Childcare isn't a problem as I can do it from home while the DCs are at school, but it might just amount to a week's work, which I could 'say' took me 16 hours but then I'm back to nothing again.

Can you not top up the freelance with another part time job? The 16 hours dont have to be in the same job, just a total number of hours in paid work.

If you will only be getting CTC (based on your earnings so amounts vary) and CB when your JSA runs out, getting WTC will considerably bump your income especially if you pay rent etc.

Supermarkets often employ part time staff during the day or maybe if your ex has the kids at the weekend you may be able to choose those hours.

If you can survive on CTC, CB and your maintenance then the freelance hours, regardless of how many, will only impact on your CTC as they are means tested.

Wow, thanks HMOO - I'll look into it, really appreciate your help.