Budget 2015 – Tax Credits

As from 6 April 2015, there will be small increases to the various elements of tax credits:

  • Basic element increase of £20
  • Couple/lone parent element increase of £20
  • 30 hour element increase of £10
  • Disabled worker element increase of £35
  • Severe disability element increase of £20
  • Child element increase of £30
  • Disabled child element increase of £40
  • Severely disabled child element increase of £20

One change that has been announced is a new test for the self employed, to ensure HMRC are supporting only those who are genuinely self employed.

As from 6 April 2015, the new test will require those Working Tax Credits (WTC) claimants relying on self-employment to meet the entitlement conditions to be undertaking an activity which is commercial and profitable, or working towards profitability.  The test will apply to the working hours used to qualify for WTC as a self employed claimant.

The test provides some alignment of the principles already established in case law with the self employment test for income tax, and is designed to prevent “bogus self employment and abuse of the tax credits system”.

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Oct 18

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I have been with Dodd & Co since I started my business in 2004 and have always been impressed with their professional, yet friendly service. They are calm, organised and have a great manner. My business is only small, but I still feel important and they always try to help me get the most out of my finances. As Market Sense has developed I have come to really value and rely on their input – they take the pain and hassle away from the VAT and HMRC and they have given me great advice on developing for the future. I have referred clients who are also very pleased with the service – and the afternoon tea at Penrith Show is much appreciated!
-- Tracey Errington