If you are self-employed and usually make large profits, but incur a loss for one year, then you may be eligible to claim working tax credits or universal credit for that year.
It is worth submitting a protective claim during any year for which you are uncertain of the level of your income as you can only backdate claims for one month from the date of claim.
Example:
John is married to Mary, who does not work. They have one child age 10.
John usually makes £100,000 per annum as a self-employed consultant.
However, he has just lost his major customer and as a result is likely to make a loss this year, and so submits a claim to working tax credits.
It turns out he does make a loss, and is eligible to receive tax
credits.
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