Tag Archives: gov.uk

Tax Credits

2 Sep

Do you qualify for Tax Credits?  They have proved to be a lifeline for so many of us, and are especially useful for the early stages of self employment.  If you have been claiming Job Seekers Allowance, and decide to start your own business for 16 hours or more a week, you may qualify for Working Tax Credits, which could bring in roughly the same amount of money that you were previously receiving on JSA.  This can take a lot of the risk out of becoming self employed, as you still have some regular income to rely on, meaning that you can afford to invest your business income back into your business.

To receive Working Tax Credits, you usually need to work at least 16 hours a week (employed or self employed), and have a low income (this includes your partner’s income too).  You don’t need to have children to qualify.

The easiest way to find out how much you could get, is to use this simple calculator.  You will need to have a rough idea of your income for the previous tax year, and an estimate for this year if you think it will be very different (for example if you have been on maternity leave, or have been made redundant or started a new job).  You can also try out different scenarios, for example based on you working different numbers of hours, or using more or less childcare.

To make a claim, simply call 0345 300 3900.

For more information, visit the Citizen’s Advice Bureau website, gov.uk, or the HMRC website.