Can You Claim Tax Credits If You Are A Self-Employed Cleaner?

If you are wondering whether or not you can claim Tax Credits as a self-employed cleaner, you will find detailed guidance in the following blog post as we answer this question and explore the eligibility criteria for claiming Tax Credits as a self-employed cleaner. In addition to this, we will also discuss the factors that determine your Tax Credits payments and the among you receive; as well as review some common mistakes to avoid when applying for the benefit.

Can You Claim Tax Credits If You Are A Self-Employed Cleaner?

Yes, you can claim Tax Credits if you are a self-employed cleaner; as long as you are in “qualifying remunerative work”. This means that as a self-employed cleaner, firstly you must be either employed or self-employed and working at the time of your claim. You may also be eligible if you have accepted an offer of a job that is expected to start within 7 days of your claim.

Secondly, to be eligible for Tax Credits as a single person, you must meet one of the following criteria:

• you are aged 16 or over and work at least 16 hours a week.
• you are aged 60 or over and work at least 16 hours a week.
• you are aged 25 or over and work at least 30 hours a week.

Meanwhile, to be eligible for Tax Credits as a couple with responsibility for a child or qualifying young person, you must meet one of the following criteria:

• One of you is aged 16 or over and works at least 16 hours a week and qualifies for the disability element of the Working Tax Credit (WTC).
• One of you is aged at least 16 and both of you work at least 16 hours a week, for a total of at least 24 hours a week.
• One of you is aged at least 16 and the other partner is incapacitated, in prison, in hospital or entitled to Carer’s Allowance.
• One of you is aged 60 or over and works at least 16 hours a week.

In addition to this, your self-employed status can be categorised as “qualifying remunerative work” if the work is expected to continue for at least 4 weeks after the claim is made. If the work has not yet started, the 4-week period will start from the date the work begins. 

Finally, the work must be done for payment or in expectation of payment. This means that the activity must be done on a commercial basis, with the intention of making a profit, and it must be organised and regular.

To claim Tax Credits, you will need to fill out a self-assessment tax return. This can be done online or on paper.

Tax Credits in the UK are administered through two main schemes: Working Tax Credit (WTC) and Child Tax Credit (CTC). However, from 6 April 2022, these schemes have been replaced by Universal Credit for most people.

Under the Universal Credit system, the amount of credit you receive will depend on your income, savings, and circumstances such as whether you have children, disabilities, or caring responsibilities. It is important to note that the amount of tax credits you receive is means-tested, meaning that it will be reduced as your income increases.

How Much Can You Claim As Tax Credits If You Are A Self-Employed Cleaner?

The amount you can claim as Tax Credits as a self-employed cleaner depends on various factors, including your income, expenses and household circumstances. 

To get an accurate estimate of how much Tax Credits you may be eligible for as a self-employed cleaner, it is recommended to use the official Tax Credits Calculator provided by the UK government. The calculator will take into account your specific circumstances and provide you with an estimate of the amount you may be entitled to.

However, for a generic estimate you may consider that if you qualify for Tax Credit, you may be able to claim up to £1,994 per year; provided that you are working at least 16 hours per week and earning less than ££16,100 per year.

To claim Tax Credits payments as a self-employed professional cleaner in the United Kingdom, you must be able to provide evidence of your self-employment and income.

In order to claim the Working Tax Credit, you will need to provide evidence of your self-employment income, as well as your National Insurance contributions. For the Child Tax Credit, you will need to provide evidence of your self-employment income, as well as evidence of any dependents aged 16 or younger. 

You can make a claim for Tax Credits by calling the HMRC Tax Credits helpline at 0345 300 3900. 

What Are The Common Mistakes To Avoid When Claiming Tax Credits As A Self-Employed Cleaner?

When it comes to claiming Tax Credits as a self-employed cleaner, there are a few common mistakes that you will want to avoid. First, you should make sure that you are registered as self-employed with HMRC.

Next, you should make sure that you keep accurate records of your earnings. This is important for two reasons. First, HMRC will need to see these records in order to process your claim. Second, if you are ever audited, having accurate records will help to prove your case.

Finally, you should not underestimate your expenses. When you are self-employed, you are able to claim a wide range of expenses against your taxes. You should make sure that you take advantage of this and claim all of the expenses that you are entitled to.

If you are self-employed, you can also claim tax relief on some of your business expenses. This can include things like travel expenses, equipment, and marketing costs.

Conclusion:

If you are a self-employed cleaner, you can claim Tax Credits by providing the details of your income and business expenses to HMRC. however, you should make sure that you meet the eligibility criteria for claiming Tax Credits as a self-employed individual and have records of your income and expenses for the application.

References:

Understanding self-employment « How do tax credits work? « Guidance «

How Tax Works as a Self-Employed Cleaner – goselfemployed.co

How to claim tax credits if you’re self-employed – Citizens Advice