tax credits...question...late return to do

March2012

becasue friend was away abroad (as she lives abroad) with ill mum (who just lost her sister in freak accident). any advice?

also my friend earned about 10k but did a bit of self employment but got into a lot of debt. how does he fill in his paperwork? how to fit in the debts he has ? thanks everso.

Cornish_piskie

Hi

Can you re-write your question as it's a bit confusing.

First you say she was abroad then how does he fill in paperwork. Are we talking about a couple?

When you say 'how to fit in the debts he has' - this has no bearing on a claim for tax credit so not sure what you mean by this either

March2012

work on payroll, some other work self employed but he also had to get credit cards to keep himself going. how do we account for the debts bit that is what i was trying to say? as gave him his cash flow

Cornish_piskie wrote: »

Hi

Can you re-write your question as it's a bit confusing.

First you say she was abroad then how does he fill in paperwork. Are we talking about a couple?

When you say 'how to fit in the debts he has' - this has no bearing on a claim for tax credit so not sure what you mean by this either

Cornish_piskie

Sorry, you still haven't clarified who is claiming tax credits here - is it a lone male or a couple?

To work out what to put on the form for self-employment read this:

http://www.hmrc.gov.uk/taxcredits/start/claiming/income-hours/self-employed-income.htm

Debts are irrelevent - the amounts he can take off his profits are pension payments, Gift Aid payments and trading losses brought forward from the previous year according to the link above.

Tell him to read all the info on the HMRC pages, that should clarify things:)

skintandscared_2

March2012 wrote: »

work on payroll, some other work self employed but he also had to get credit cards to keep himself going. how do we account for the debts bit that is what i was trying to say? as gave him his cash flow

You don't "account for the debts". He ran those up because he didn't have enough income. His choice! A wiser move would have been to cut down on the expenditure/adjust his lifestyle so he didn't need to use the credit cards. Anyway, the credit card expenditure can't be counted as any sort of income, and the repayments can't be taken into account in calculating benefit entitlement either. If he is having problems making repayments he needs to speak to a debt advice services such as CCCS or PayPlan who can give free, and very helpful, advice.