Internet Marketing and Working Tax Credits?

Marvqn1

Hello,

I have two questions about claiming working tax credits as a self employed internet marketer.

1. Can you claim working tax credits as a self employed internet marketer if you work at least 30 hours a week and it's your only source of income? By internet marketer, specifically I mean doing affiliate marketing online.

2. On another forum in a thread about working tax credits, someone said "As of April you will have to show taxable profit equivalent to the National Minimum Wage for the number of hours you say you are working - and it has to be over 24 to get tax credits."

Does this mean that if you are self employed, you need to earn at least £9843 per year to qualify to claim working tax credits, because the minimum wage is about £6.31/hour then times that by 30 (the minimum number of hours required to qualify for working tax credits) equals that amount.

Marvqn1

blondebubbles wrote: »

Tax credits won't ask what you do, just that your are self employed.

Have you registered as self employed and got a UTR?

So you need to be in paid work for 30 or more hours per week (if no children/disabilities). For self employed paid work means any work you do for payment (or would expect to be paid) or profit.

As for the second part, I think that's for universal credits which will include tax credits. My understanding was you would be classed as earning at lease the minimum wage even if you don't earn it.

Yes, I registered as self employed 2 years ago.

On another forum, someone said that in their experience online income and working tax credits are a grey area, so it sounds like it might be harder to prove the amount of hours worked than other types of self employment.

If you are self employed, aside from the minimum working hours having to be at least 30 hours/week, is there a minimum amount you need to earn monthly or yearly to be able to qualify for working tax credits?

Marvqn1

blondebubbles wrote: »

Thereis no minimum income, it's a maximum income.

You should be fine as long as your follow their record keeping suggestions:
If you're self-employed
If you're self employed, the Tax Credit Office recommends you keep the following, in case they need to check your tax credits claim:
your Unique Taxpayer Reference Number
details of bookings or appointments you have taken or made
copies of any advertisements you've placed
details of the hours you've worked each week
invoices you've written for any work done
It's important to know that there is different guidance for what you need to keep for your tax return. For business purposes you'll probably have to keep more documents, and for a longer period.

As online marketing doesn't involve invoices, bookings or physical advertisements, how much detail would be required to prove that I work at least 30 hours per week?

Would any physical papers be required for proof of the hours worked or do I just need to describe the daily tasks that I do?

Marvqn1

blondebubbles wrote: »

I don't personally know what your job entails so cannot tell you what records to keep. Someone else may be along later. The information I provided is HMRCs advice.

How do you actually get paid?

I get paid via cheque.

Marvqn1

blondebubbles wrote: »

Do you get paid by a individuals or a company or multiple companies? How do you prove to who pays you what work you have done? Do you choose what work to do or are you told?

Sorry just don't actually understand what your job entails. With self employed people I've seen they've usually invoiced for the work done so that plus keeping some sort of diary was usually enough.

I get paid only by one company. I fill out a tax return yearly, so I guess that constitutes as proof as to who pays me.

I promote products online, so there are multiple ways of promoting products, so it's really my choice as to exactly what the tasks I do to earn commissions. But ultimately, it's about writing content on a website then driving traffic to the affiliate links whether that be via SEO or things like social media websites.

The universal credits that you mentioned in your first post, does that come into place in 2017?

Marvqn1

blondebubbles wrote: »

Thanks for the info. Could the company maybe give you something to confirm the hours you do?

I'm very doubtful they would, because the affiliate company has no such record as to what amount of time their affiliates have spent earning the commissions which they've earned.

Marvqn1

blondebubbles wrote: »

As for the second part, I think that's for universal credits which will include tax credits. My understanding was you would be classed as earning at lease the minimum wage even if you don't earn it.

Someone in this thread said that they were turned down for working tax credits because their publishing business isn't yet earning the minimum wage. That post was written in July, so it sounds like they already have a minimum wage requirement ruling even though Universal Credit isn't in place yet.

forums.moneysavingexpert.com/showthread.php?t=4601553&highlight=marketing&page=7

Marvqn1

blondebubbles wrote: »

They don't. I don't obviously know anything about this persons claim but it's not the case.

Online it says that Universal Credit is being implemented between April 2013 until the end of 2017. So when does the minimum wage ruling regarding self employed people claiming working tax credits come into force?

bloolagoon

From this forum only the Tax credits people are looking more closely at low income high hours claims and if they suspect they are not working those hours in legitimate expectation of payment they are investigating further.

BigAunty

I am aware that one of the basic rules of working tax credits is that that the business activity must be in the expectation of payment (not just in the hope of it but with the probability of it). It's not enough to be 'busy' and do work with the speculative expectation of perhaps possibly getting income from it.

There was a thread by someone hoping to get an income writing e-novels? or something similar? who wanted to know if he could get tax credits until he hit the big time. If you find this thread, you may find that it touched on this concept.

Here's a link to a HMRC manual. I think it is the staff manual, guidance to staff investigating claims. Hopefully someone can give you a link to a user facing document that will help clarify whether or not your self employment opportunity, if investigated by the HMRC, might order you to repay any WTC you would have received.

http://www.hmrc.gov.uk/manuals/tcmanual/TCM0126260.htm

Marvqn1

BigAunty wrote: »

I am aware that one of the basic rules of working tax credits is that that the business activity must be in the expectation of payment (not just in the hope of it but with the probability of it). It's not enough to be 'busy' and do work with the speculative expectation of perhaps possibly getting income from it.

There was a thread by someone hoping to get an income writing e-novels? or something similar? who wanted to know if he could get tax credits until he hit the big time. If you find this thread, you may find that it touched on this concept.

Here's a link to a HMRC manual. I think it is the staff manual, guidance to staff investigating claims. Hopefully someone can give you a link to a user facing document that will help clarify whether or not your self employment opportunity, if investigated by the HMRC, might order you to repay any WTC you would have received.

Thanks for the info.

I read that thread earlier about someone writing e-novels. I think it was the 10 page thread.

Has anyone got a link to the user facing document?

I was intending to phone the HMRC tomorrow about claiming WTC, but it's seems pointless with Universal Credit soon coming into effect and it being unknown whether this type of self employment would require having to repay the WTC back at a later date.