Are sole traders eligible for benefits? — Scope | Disability forum
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Are sole traders eligible for benefits?

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pammy13
pammy13 Community member Posts: 1 Listener
my 19 year old grandson has been offered a job, but it means he needs to become a sole trader to enable him to sub contract to the 'employer'.  He lives with his mother who gets tax credits for him at the moment, will he be eligible for any benefits if he becomes a sole trader? 

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  • BenefitsTrainingCo
    BenefitsTrainingCo Community member Posts: 2,621 Pioneering
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    Hi pammy13,

    To get child tax credit (CTC) for someone aged 19 it means they are in full-time education which they started before they were 19. If your grandson is still in full-time education, then your mother can still get CTC. If he isn't, then unfortunately, he can't get Working Tax Credit (WTC) unless he gets a disability benefit.

    I'm not sure whether he is a disabled person himself. If he is, and he gets DLA or PIP, then as long as he works at least 16 hours a week he could claim Working Tax Credit. HMRC would need some evidence about his hours of work.

    If he doesn't get any of those benefits, then I'm sorry but he can't get WTC as he is too young, and I'm assuming he will be working too many hours to get any out-of-work benefits.

    It is worth checking however whether Universal Credit has started for people who are working in his area. If so, then that is something which can be claimed at his age. It will depend on his expected monthly wage. You can check what rules apply in his area by entering his postcode on this website.

    His mother may also find that if he is the only child she gets CTC for, and she works, she will lose her WTC as well. They may need advice as a family about the best way forward - for example, from a Citizens Advice Bureau (CAB). 

    I also think your grandson should get advice about having to be a sole trader when offered a job. It could mean the 'employer' is trying to do him out of employee's benefits such as the national minimum wage, holidays etc. He could ask the CAB about this too.

    Will
    The Benefits Training Co:

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