Tax Credit Investigation

FRESTER

I had the same review in October, just sent what they asked for and had no problems.
Our income was below nmw because we were in our first year of trading, its all about checking your hours.
If you don't comply they will reduce your payments and ask for past money paid back.
If you want there money you have to answer there questions.
Relax and get your info together.
Compliance reviews are getting very comon.
Good luck with whatever you choose to do.

dacouch

bikeman wrote: »

I'd love to do it but its during the school hols and £64 a day barely covers childcare for my 2 young children (£56 a day) let alone my loss of earnings. more seriously I don't know how long its likely to last so I can't even book the childcare without risk of being seriously out of pocket.

btw i work from home so I look after them during hols and after school termtime but should I really have to explain this.

for those that think jury service is profitable think again - £64 a day is for out of pocket expenses which are paid out of net salary. to equate it to £33k pa gross is nonsence. earnings also have to be proven so I'm likely to get fkall based upon my last yrs accounts.

enough of the lectures please.

You do the mathes

Icequeen99

bikeman wrote: »

I've now taken legal advise and can advise that a tax credits investigator cannot demand lifestyle information. This only be demanded when this becomes a tax evasion investigation.

.

I hope that legal advice came from someone experienced in tax credits. Did they actually give you any legislative reference for this?

Tax credits legislation is separate from tax legislation, in your case this is a current year investigation therefore under s.16 tax credits act and HMRC can ask for anything they reasonably need to determine whether your claim is correct. The legislation doesn't restrict what they can ask for, so I can't see how your legal advice can conclude that they cannot demand it. I would turn the question around - what does your legal adviser think is stopping TCO asking for this info?

You can of course refuse to provide the information, but the consequence of that will be the stoppage of tax credits.

Do you claim the childcare element? If so, although this relates to the children it is part of Working Tax Credit and so any hours issue would impact on the childcare element as well.

IQ

dktreesea

bikeman wrote: »

Sorry I dont see the relevance. Like everyone else my tax credits claim is based upon my income - tax free investments have no bearing.

Like eveyone I am within my rights to use tax free investments and do not have to declare them on my tax rerturn/tax credits claim. They are irrelevant unless I choose to cash them in and I am under no obligation to do so 'in hardtimes'.

The fact that I can liquidate them in an emergency is of no consequence.

I don't make the rules.

As for declaring empty accounts, I've never heard such rubbish.

I'm going to comply with their request to prove my income. If they want to know what ISAs I have, what car I drive, how much I spend on food etc and other stuff that is not relevant to a tax credits declaration they will have to get that themselves or get a court order forcing me to provide it.

I think it perfectly possible that they've asked for this information but neglected to say that it is voluntary in the hope that I provide it. I'll get some legal advice.

While it's true that tax credits are not limited by the amount of capital you have, any income from that capital, including, as I understand it, income that is not subject to income tax, is taken into account when calculating the amount of tax credits you are entitled to.

I note, if you do have liquid assets (including stocks and shares) of more than £16k, once Universal Credit comes in, you won't be entitled to any benefits.

bestpud

Crikey! I'm all for checking the 'facts' given us by the powers that be and, believe me, I'm not one to bow down to the state, but there is times when taking a stand is not worth it.

If you have nothing to hide then I can't see why you are allowing this to wind you up!

Send them the info, quote the relevant legislation that shows how they should use that info and get on with your life.

Mountain out of a molehill otherwise!

shedboy94

bikeman wrote: »

There you go assuming that a selfemployed person on £12k is somehow getting a better deal than an employee on £12K. Believe me selfemployment at this level is far harder.

That's not strictly true though is it........s/e people can make so many deductions that PAYE can't making the real income a lot higher.......s/e will, depending on the nature of business, deduct petrol costs, car repairs, phone, broadband.......etc etc. Childminders have it the best though - deducting utility costs, food, toys, days out, wear and tear......and you don't even need receipts for half of them so you can do your weekly shop, buy your kids a couple of presents and then class it as business expenses.