Tax credit overpayment - help please..

Icequeen99

appleblossom wrote: »

It is his choice to work for them s/e - won't go into all the details as to why but its for personal reasons (nothing bad or fraud!!) - we would be able to get a letter confirming the hrs he has worked- he doesn't submit time sheets etc, no contract etc, no invoicing as just does 30 hrs a week unless he has time off which he keeps to a minimum due to not being paid for it.

Thank you for your help and advice - can I ask do you answer on a personal or professional knowledge basis?

But it isn't your husband's choice to make. You cannot just decide to be self-employed. This very much sounds like an employment relationship and therefore you need to seek advice. The company and your husband could both have problems and tax/NI/penalties to pay if it turns out that he is an employee.

On the issue of HMRC, not sure how much sway the accountants statement will have as presumably he is just getting the info from your bank account details, which you could just show to HMRC yourself and save some money by drawing up a table.

If your husband is self-employed, then he needs to be keeping records for the tax side of things for his tax return. So he should be sending invoices, keeping mileage logs and other things on this list here: http://www.hmrc.gov.uk/sa/rec-keep-self-emp.htm

Is there a reason he isn't doing that?

You can also give HMRC tax credits your husband's UTR and evidence of his Class 2 contributions. Has he got those?

IQ

appleblossom

we thought that having an accountant do it would offer more proof - I will have a look at the contract side of it.

They've not asked the nature of the business etc, for all they know he could be a window cleaner with 200 clients - I do see it is easier in our position.

He pays NI contributions for self employed earners.

princessdon

You need the accountant to clarify the employee V self employed status and help with that.

Everything else you should be able to do on your own.

Send an invoice in weekly - stating XX hours at £XX

Keep a record of elgible expenses and submit to HMRC

Have a contract with them as a contractor - with termination dates (as I say google there are hundreds of them with a template to choose from and tweak).

You really need advice on the arrangement more than anything