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792665
star this property registered interest false more like this
star this property date less than 2017-11-20more like thismore than 2017-11-20
star this property answering body
Department for Work and Pensions more like this
star this property answering dept id 29 more like this
star this property answering dept short name Work and Pensions more like this
star this property answering dept sort name Work and Pensions more like this
star this property hansard heading Universal Credit: Self-employed more like this
star this property house id 1 more like this
star this property legislature
25259
star this property pref label House of Commons more like this
star this property question text To ask the Secretary of State for the Department of Work and Pensions, pursuant to the Answer of 11 September 2017 to Question 9283, what the evidential basis is for the statement that flaws in the current system allow some self-employed claimants to receive full State support while declaring low or zero earnings. more like this
star this property tabling member constituency Batley and Spen more like this
star this property tabling member printed
Tracy Brabin more like this
star this property uin 114592 more like this
star this property answer
answer
star this property is ministerial correction false more like this
star this property date of answer less than 2017-11-23more like thismore than 2017-11-23
star this property answer text <p>Tax Credits for the self-employed lack a strong incentive for claimants to grow their earnings and reduce their dependency on welfare. The rules for eligibility for Working Tax Credit (WTC) are set out in the Tax Credits Act 2002 and the associated regulations, in particular the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002. These do not include a requirement for those claiming WTC to increase their earnings, or to earn more than a specified amount.</p><p> </p><p>The Government introduced the strengthened self-employment test into Working Tax Credit in 2015 to address the risk of individuals continuing to claim WTC, despite not working on a commercial and with a view to a profit basis. HMRC advice on this is in the link below:</p><p> </p><p><a href="https://www.gov.uk/government/publications/revenue-and-customs-brief-7-2015-new-rules-for-the-self-employed-claiming-working-tax-credit/revenue-and-customs-brief-7-2015-new-rules-for-the-self-employed-claiming-working-tax-credit" target="_blank">https://www.gov.uk/government/publications/revenue-and-customs-brief-7-2015-new-rules-for-the-self-employed-claiming-working-tax-credit/revenue-and-customs-brief-7-2015-new-rules-for-the-self-employed-claiming-working-tax-credit</a></p><p> </p><p>Historically, a high proportion of self-employed Tax Credit claimants saw little progression in their earnings over several years, including many of the lowest earners.</p><p> </p><p>Recently, HMRC and DWP have published data from a survey of self-employed tax credit claimants. These data confirm that many such claimants have low earnings and demonstrate the need to support and incentivise claimants to grow their earnings:</p><p> </p><p><a href="https://www.gov.uk/government/publications/self-employment-working-tax-credits-claimant-survey-and-follow-up-research" target="_blank">https://www.gov.uk/government/publications/self-employment-working-tax-credits-claimant-survey-and-follow-up-research</a></p>
star this property answering member constituency East Hampshire more like this
unstar this property answering member printed Damian Hinds remove filter
star this property question first answered
remove filter
star this property answering member
3969
star this property label Biography information for Mr Damian Hinds more like this
star this property tabling member
4588
unstar this property label Biography information for Tracy Brabin more like this