Self employed & tax credits

[jadeybags]

Hi. 3 yrs now I have been self employed & claiming top up benefits. Which are based on me earning £100 per week profit from my work. My 20 yr old son just left college & started working at Fujitsu. 18 yr old daughter has been at college & will be there another 2 yrs.

Housing benefit has now gone down to £2 per week. Soooooo I am hoping I can sack them off completely & pull out all the stops to earn more from my self employment.

What's confused me is I have been on the Turn2us benefit calculator & it's saying I will still get the same working & child tax credits as I do now, even if I earn up to £250 a week profit, so far anyway... I haven't tested out a higher figure than that yet.

Is that right? I thought the more you earned, the less tax credits you got??

[blondebubbles]

If your income increases from one tax year to another they disregard the first £5000.

 

So in your scenario if your income is going from £5200 last year to £13,000 this year then your tax credits treat you as earning £8000.

 

Your WTC would decrease but your CTC would remain the same.

 

From April next year the full £13,000 would be taken into account so your WTC would reduce further. CTC would still be unaffected unless you earn over £16000.