Right here goes...
my older brother was unemployed for a few years when the job centre sent him on a corse to a place called A4E.
whilst attending this corse he was asked what he wanted to do, he said mechanic. the corse operator then told him about self employment and tax credits. he said (this was in 2015) that as long he earned £20 a week the government would give him around £55 a week tax credits and also he would not have to attend the job center any more and would obviously be classed as employed too.
So, he registered with HMRC as self employed, got his unique tax reference number and registered for tax credits.....
At the end of the year he did his first tax return for around £8000. in April the following year he completed the tax credits form form for that previous year and all looked good !
So in 2016 he does his next tax return and its for around £11000 so he pays a little bit of tax to HMRC.
April 2016 comes and he completed the tax credits for again and declared his earnings and all is good or so he thinks ?
September 2016, 3 BROWN letters arrive from tax credits asking for :
last 6 months invoices
last 6 months bank statements
last 6 months paypal statements
He sends all relevant information and a month later receives a letter to say his tax credits have been stopped as he is not working towards making a profit !!!!
at the time of being self employed he was not claiming any benefit apart from Tax Credits ?
he was paying for prescriptions and dental care as he should do.
he was paying full rent on his house too.
He has now been forced to become unemployed again because the tax credits were helping him stay afloat during weeks of low work.
he now claims £75 a week unemployment benefits, housing benefit of around £100 a week, free dental and health care and is paying Nothing into the system ???
how can this make any sense !
you work and pay in and get £50 a week to help you,
or you sit on your bum and do nothing and get £175 a week and free dental and prescriptions ?
this makes no sense at all !
what do you think ???