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Working Tax Credit - really?, can you??


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Is this senario correct???

A married woman, (husband receives around £6000 pa in private pension) no income, age 60, living on savings that are running out, decides to turn her hobby into a self employed business, will work minimum 16 hours per week, will register as necessary for tax and NI, but expects to have only around £4000 max profit per year, she appears to be eligible for Working Tax Credit and will not need to pay class 2 or 4 NI as profits so small and no tax as income will be under the tax allowance. Is this correct?, is Working Tax credit means tested?, sounds too good to be true!

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Well yes, that does take into account the husbands income of £6000 pa from a private pension - and it is a serious query. I have heard anecdotes that some women who mistakently thought they would get their state pension at 60 have been told by the Job Centre to register as self employed to enable them to obtain benefits, so I wonder if this is the benefit they mean?

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When I was getting it a few years ago, and as far as i know, it is not "means tested", but "income tested", ie, if you have a mansion full of valuable antiques or yachts or 1 million pound in the bank (none interest bearing account), they don't count.

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When I was getting it a few years ago, and as far as i know, it is not "means tested", but "income tested", ie, if you have a mansion full of valuable antiques or yachts or 1 million pound in the bank (none interest bearing account), they don't count.

 

Yes, it's means-tested.

 

No, it's not restricted only to people who are destitute.

 

see https://www.gov.uk/tax-credits-calculator

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