Fed-up with benefit program's on TV

[Happ Hazzard]

Just raise the tax free allowance to the equivalent of 40 hours x minimum wage and keep it linked to NMW in that way. Hey presto, no more need for tax credits for people who work full time, pay tax, then get some of it back. And an end to people gaming the system by purposely only working 16 hours a week or doing non-existent self-employed work.

[I1L2T3]

Just raise the tax free allowance to the equivalent of 40 hours x minimum wage and keep it linked to NMW in that way. Hey presto, no more need for tax credits for people who work full time, pay tax, then get some of it back. And an end to people gaming the system by purposely only working 16 hours a week or doing non-existent self-employed work.

 

Increasing the tax free allowance one way to counter it for sure.

[poppet2]

Just raise the tax free allowance to the equivalent of 40 hours x minimum wage and keep it linked to NMW in that way. Hey presto, no more need for tax credits for people who work full time, pay tax, then get some of it back. And an end to people gaming the system by purposely only working 16 hours a week or doing non-existent self-employed work.

 

How can you do a non-existent self-employed job?

You would need records to show your earnings.

What about cash earners such as window cleaners, car washers,cleaners etc?

[I1L2T3]

How can you do a non-existent self-employed job?

You would need records to show your earnings.

What about cash earners such as window cleaners, car washers,cleaners etc?

 

You just need to prove you are putting in hours. You could even just turn a hobby into a little sideline. Remember, some new businesses don't make a profit for years. Other people just work freelance, say in hairdressers doing 15 hours a week then topping up with tax credits.

 

HMRC will have to be part of the crackdown, screening all these businesses much more effectively to work out whether they are just a vehicle to base tax credits claims on. Same for the freelancers.

 

Lots of people are getting a very good living off these arrangements. Very cynically.

[poppet2]

This is the thing, people do.

 

On Mumsnet there are people who do exactly that - give up full time jobs to get 16 hour a week jobs or go "self-employed' so they can max out on tax credits and housing benefit.

 

The only difference is they won't look like the people on benefits street. They will have nice cars and houses, many will live in prosperous areas. Outwardly they look the part they play the system as well as anybody from any TV programme, perhaps even better.

 

Look at the Mumsnet 'money matters' forum. Go back over a few months - half of it is about benefits and tax credits.

 

 

Can't believe it, I've just read the following on "Mumsnet"...

 

"We would actually be £26k better off if I gave up work"

 

http://www.mumsnet.com/Talk/in_the_news/1188250-Tax-changes-are-you-better-or-worse-off

 

"£20k won't get housing/CT benefit etc surely? I used to earn 15 as a LP and was only entitled to TC.that was the point I would have been better off not working as my dds would have got free school meals/ uniform etc."

Edited June 23, 2015 by poppet2

[Lotusflower]

The unemployed have big screen TVs etc on the never ever. They pay fortnightly for the kids school shoes etc. If you think it is so great on benefits stop working and give it a go! See how you get on.

 

(Shakes head and mutters something about people in their fifties who still don't understand what generalisations are all about and the inherent folly of sticking labels on other people!)

[Mister M]

A very good article by Deborah Orr in the Guardian which links to figures from an analysis which shows that:

 

just £8bn on benefits goes to the unemployed, while an estimated £76bn, according to James Ferguson of Money Week, goes to people who are working.

http://www.theguardian.com/commentisfree/2015/jun/26/benefits-cheats-employers-milk-system-in-work-benefit

 

Though you'd never know that if you watched one of these benefit programmes, which are akin to right wing trolling, and diversionary tactics.

[poppet2]

If you or I packed in our jobs we would be entitled to nothing. Meanwhile people who haven't worked for years get money thrown at them. It's madness.

 

What proof do you have for this statement.

You would be entitled to the same as anybody else applying for benefits, the same rules apply to everyone.

[Happ Hazzard]

What proof do you have for this statement.

You would be entitled to the same as anybody else applying for benefits, the same rules apply to everyone.

Yes but same rules benefit the feckless. People who have just left jobs cannot claim immediately. People who haven't worked for years can. People who have savings over a certain amount either can't claim or cannot claim as much, whereas people who are reckless with money and do not save can claim for everything. It's not fair and it needs to change.

[poppet2]

Yes but same rules benefit the feckless. People who have just left jobs cannot claim immediately. People who haven't worked for years can. People who have savings over a certain amount either can't claim or cannot claim as much, whereas people who are reckless with money and do not save can claim for everything. It's not fair and it needs to change.

 

If you leave your job voluntarily or get sacked it has always been the case that you can not claim JSA for 9 months. A rule that applies to everyone.

 

If you are made redundant, you can claim, but if you have a large amount of redundancy money as a result, do you think it is fair to keep that and claim HB, CT, etc. Would that be fair on the tax payer?

 

People who live on nothing but benefits can't save because most of the benefits goes to their landlord, not them.