How to prove hours worked for Tax credits?

Tired_Traveller

Hi there, I have finally been awarded my tax credits after 3 months but the award isn't for the correct amount. They are not awarding me for working tax credits based on evidence of hours worked. I work from home as a consultant/director of my own LTD company. What would be the best evidence to support my appeal to show I work the 50 hours a week that I current and have been doing.

Thanks

HappyMJ

Tired_Traveller wrote: »

Hi there, I have finally been awarded my tax credits after 3 months but the award isn't for the correct amount. They are not awarding me for working tax credits based on evidence of hours worked. I work from home as a consultant/director of my own LTD company. What would be the best evidence to support my appeal to show I work the 50 hours a week that I current and have been doing.

Thanks

The best evidence would be a diary evidencing to yourself at least how many hours you put into the business. Write down what you did every day and how much time you spent on the task. That's what I do. eg...
1st mar - spent 30 minutes driving to clients premises at 9am to investigate solutions for whatever spent 3 hours there then 30 minutes driving back home. Spent another 30 minutes on admin tasks - Total 4.5 hours. (invoiced £30 to client) - (36 miles)

They probably will never ask for it but they can. I use mine for the mileage claims as well. It's in a spreadsheet format and totals up every week then averages out over 13 weeks so I then make sure the average is over 30 by doing more such as looking for new clients if necessary.

Tired_Traveller

Thanks Skcollob & HappyMJ. Yeah I understand where they may be coming from. Just doesn't help the innocent. Within 2 years I should be employing 2 or more full time staff. Their efforts make sure they hinder any growth possible in this economic (meltdown) climate.

I guess I will have to prepare a better case and include information such as , advertising, phone logs, email records, marketing etc. When everyday is different it's hard to show the break down as in a normal job. Some days require travelling across country to meet clients, other days are spent optimising website and advertising strategies for the company and some days are spent updating the business accounts for the accountant.

I will fight them to the end as I work the hours and will prove it one way or another.

DaisyFlower

I can see why they have queried the 50 hours a week, given that your other post says you have a 9 month old child and the business is not making any money.

Was the claim for 50 hours childcare as well?

Tired_Traveller

DaisyFlower wrote: »

I can see why they have queried the 50 hours a week, given that your other post says you have a 9 month old child and the business is not making any money.

Was the claim for 50 hours childcare as well?

No my partner looks after the child so there is no child care involved. Starting the business has taken a lot of work to get new clients and develop the business. This week has seen a lot of new clients contact me and finanlly my effort coming back. After a few months the company should have a cashflow and enough profit not to rely on my working tax credits to keep everything going.

Trying to compete to get your website noticed against the big competitors is hard work and required a lot of SEO (search engine optimization) and other marketing while working on current clients. They have given me no allowance as far as I can tell for tax credits. I will find out once the final letter comes in explaining the breakdown.