Working Tax Credit & Online Business Query
I want to start my own online business, as I hate being on the dole and want to work for myself. However, I want to know what the situation would be in regard to claiming Working Tax Credit. I mean, say I started an online shop and it did not take off right away. How would I prove to HMRC that I was actively working on the store for 30 hrs per week? Also, I have heard that the government is proposing new legislation for WTC. If so, how would it affect a self employed person like me?
If you’re self-employed, paid work means any work you do for payment (or would expect to be paid) or profit.
To claim Working Tax Credit, you should expect your paid work to continue for at least four weeks.
How to work out your usual weekly working hours
You’ll need to put the number of hours you usually work in a week on you tax credits claim form. You only count hours for which you are paid – don’t include unpaid lunch hours.
If you’re an employee
Give the total number of hours you usually work and are paid for in a week for all jobs that you do. If you normally work overtime, include this.
If your hours vary from week to week, put down what you and your employer(s) think of as your normal number of paid hours.
If you’re self-employed
Put down the number of hours you normally spend working in your business, either on work billed to the client or related activity, for example:
trips to wholesalers and retailers
visits to potential clients
time spent on advertising
cleaning the business premises
cleaning a vehicle used as part of the business, for example a taxi
If you work from home, include time spent travelling to see customers.
If you have only just become self-employed, use the number of hours you normally expect to work in a week.
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Re. the government’s new Tax Credit changes, how will it affect single working people working over 30 hrs pwk? Will there be any significant changes there, or will these be confined to just couples with kids earning over a certain amount per year?
Thanks for your advice. So if I started, say, an online shop, I would need to work out how much time I would spend promoting the site each day, adding new items to it, article promotion etc. This would obviously have to amount to at least 30 hours per wk, just like if I were working for an employer for that amount of hours.
I have very bad news to tell you all: I have been refused Working Tax Credit just because my writing business is not yet earning the minimum wage. Even though I am working 30 hrs a week on my business, they told me that my monthly earnings are not enough to claim.
What do I do now??