Self employed and tax credits

rorysdad

Hi


A relative of mine has been claiming tax credits for himself, his partner and child for a couple of years now.


He is a self employed contractor/labourer. He has just realised that he has been giving HMRC his annual income figure of £22,000 - rather than the figure he should have been giving which I think I am correct in saying is his 'profit' - which is only £5,000 - so he has only been paid a fraction of the tax credits he should have been getting.


Will HRMC back date his claim if he gives them the profit figure?


He has accounts which have been prepared annually by a qualified Accountant.


Thanks,


RD

tomtontom

How does a labourer have annual costs of £17,000? :eek:

rorysdad

I used the term 'labourer' loosely - he is not in a profession and he is not a Manager and does a primarily manual job.


The expense comes largely travelling to work a long way away for which he claims fuel and the running costs of his car.


RD

StormyWeather_2

That's over £300 a week on fuel and running a car!! Can't he get work closer to home.

I don't think they will back date for a few years.

tomtontom

rorysdad wrote: »

I used the term 'labourer' loosely - he is not in a profession and he is not a Manager and does a primarily manual job.


The expense comes largely travelling to work a long way away for which he claims fuel and the running costs of his car.


RD

I would suggest he be very careful. His expenses are unrealistic in relation to the role, should he report as much to HMRC they may well investigate his claim.

rorysdad

If you are working for a nationwide company and asked to go somewhere you can't turn that down.


Irrespective of that, the question is will he get his claim back dated?


RD

Poppie68

No i don't think he is able the onus is always on the claimant to supply the corrrect figures, check the paperwork and confirm it is correct. I would of though his accountant should of been aware of the correct figures to submit as well ( maybe wrong). Also as others have said his expebses etx do seem high and HMRC are well aware accountants can be imaginative so they could very well look further into his finances.

Poppie68

rorysdad wrote: »

I used the term 'labourer' loosely - he is not in a profession and he is not a Manager and does a primarily manual job.

If he is not in a profession and is not a manager then surely he is a labourer?


The expense comes largely travelling to work a long way away for which he claims fuel and the running costs of his car.


RD

Is he not in the building trade?