Tax credits- letter asking for more info

the_matrix

Hi every1

I am self-employed working 30 hours a week. I have applied for tax credits. I got a letter yesterday. It says I must provide informations on:

• Type of work you do and or the nature of your business
• Summary / diary of bookings and / or appointments you have made
• Copies of advertisements placed
• A breakdown of hours worked per week
• Invoices for any work done
• Receipts for any expenses paid
• Details of any vehicles (provide registration documents) and tools used in your business
• Insurance documents for vehicles
• Details of any trade or business qualifications

My business is that I make arts and crafts and sell them at car boots sales on the weekend. This is how the money is made. The materials are given to me by family- I have not bought them- what is this classed as?



I also have a website but do not sell on it. Its more like an information website on arts and crafts and I am hoping someone will advertise on it soon. This makes up part of the 30 hours a week I work- post, maintenance, emails, backup, repair, optimise etc


Also I go out to / write / email businesses and try and get them to contribute to the website.



What's they best way to answer the above questions?


Thanks y'all MSEs :beer:

Vejovis

i don't think a website where you're hoping someone will advertise would be classed as part of your business. sounds like they are challenging your assertion that you work 30 hours, as they seem to be having a crack down on SE hours.

the_matrix

Vejovis wrote: »

i don't think a website where you're hoping someone will advertise would be classed as part of your business. sounds like they are challenging your assertion that you work 30 hours, as they seem to be having a crack down on SE hours.

What about if someone did advertise?

BigAunty

Yes, there have been numerous posts here from self-employed people receiving working tax credits who are required to prove that they are in numerative work and are actually working the hours they claim, some of them have had their wtc cancelled.

So there does appear to be a programme of the HMRC challenging working tax credits for the self employed.

Vejovis

the_matrix wrote: »

What about if someone did advertise?

it'd have to be one heck of an expensive advert, or you'd need a lot more than one advertiser to make it a business.

Vejovis

BigAunty wrote: »

Yes, there have been numerous posts here from self-employed people receiving working tax credits who are required to prove that they are in numerative work and are actually working the hours they claim, some of them have had their wtc cancelled.

So there does appear to be a programme of the HMRC challenging working tax credits for the self employed.

perhaps they are preparing the way for people being classed as earning over £200 a week when SE, whether they are or not. if they can get the word out now, it'll save them a lot of work in the future.

Caz3121

Do you make a living from your business or is it more of a hobby?

the_matrix

Caz3121 wrote: »

Do you make a living from your business or is it more of a hobby?

I make £50 a week.

BoGoF

In your original post you asked what this was classed as.

I'd say it's a hobby, nobody really 'works' 30 hours for £50 a week. Unfortunately these 'hobby self employed' people have cottoned on to the fact HMRC were dishing out money left right and centre in the way of tax credits.

the_matrix

Vejovis wrote: »

it'd have to be one heck of an expensive advert, or you'd need a lot more than one advertiser to make it a business.

On budget hosting @ £20 a year + £10 a year domain name. If they pay £10 per week- you are making a clear profit. This would be acceptable?

the_matrix

BoGoF wrote: »

In your original post you asked what this was classed as.

I'd say it's a hobby, nobody really 'works' 30 hours for £50 a week. Unfortunately these 'hobby self employed' people have cottoned on to the fact HMRC were dishing out money left right and centre in the way of tax credits.

I see where you are coming from. There are no jobs and I have been looking for ages. This business is profitable. I am making money- not a loss. I know £50 is not much but it will grow- fingers crossed.