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tax credits & self-employment - £3k o/payment?
Loles
Posts: 9 Forumite
I wonder if someone can help me understand how tax credits work with self-employment. Does the income disregard of £5k apply or is that only for those who are salaried?
I'm self-employed and the last tax year was the first full year in which I claimed tax credits. As my income fluctuates, I estimated my 2013-14 income as being the same as my actual income for the previous tax year.
Having just done my books, I have earned £3k more than that. When I phoned HMRC today, the advisor told me that I'd need to wait for the renewal pack for that info to be logged. And he said that I would need to repay the £3k.
But now I'm wondering about the £5k income disregard and wondering why that rule doesn't apply to me. Is it a different rule for self-employed?
I'm self-employed and the last tax year was the first full year in which I claimed tax credits. As my income fluctuates, I estimated my 2013-14 income as being the same as my actual income for the previous tax year.
Having just done my books, I have earned £3k more than that. When I phoned HMRC today, the advisor told me that I'd need to wait for the renewal pack for that info to be logged. And he said that I would need to repay the £3k.
But now I'm wondering about the £5k income disregard and wondering why that rule doesn't apply to me. Is it a different rule for self-employed?
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