www.iva.co.uk

Hi everyone,
does anyone know the benefits system inside out? Situation is; hubby is just starting out as self employed, altho currently also still working his 'employed' job to try and keep an income while the business is building, however he's finding it frustrating that because of this he isnt getting to spend the time he wants to getting the business off the ground. If he was to leave his job and concentrate on being self employed would our working tax credit amount increase,as we would stuggle to get by on only my wage if the benefit remained the same. currently we get £70 per month plus child tax credit. I only work part time 10hrs p/wk (which unfortunately I can't increase as the hrs just arent available in my job and there's not a lot else about), he would be working at least 35 hrs pr wk. I know tax credits is based on previous yr but as there would be a significant reduction in his wage, would hmrc reasess our situation???
any help would be appreciated!

I've no idea but hopefully one of our other posters may help. CAB can do a benefits check so I assume they know the rulings of benefits?

Hi Blue Lagoon, you are right in saying tax credits are based on previous years income unless you have had a change in your circumstances. If you ring the tax credit office and tell them of the change they will reassess based on this years position

meant also to say if you go to www.turn2us or direct gov you can check your entitlements here

if you go to the hmrc taxcreit.gov website there is a do i qualify bit were you can put all your details in and see what you could get.

The new rules are if the income goes down by £2500 or more the tax credits may go up.

put in your tool bar taxcredits.hmrc.gov.uk that will take you to the calculater hope this helps

My Kelly Osadare - who I see has already posted on this thread earlier today (probably bored now of counting her Easter eggs!) is a benefits guru and would be more than happy to chat this through with you if that would help - alternatively the HMRC tax software is fairly reliable as well.