Proving Hours Worked for Tax Credits as a Company Director

Hi

I hope someone can help.

I have just received a letter from the Tax Credit folks asking for proof of hours worked.

I am a company director, as I understand things this means I am in employment and not self-employed, and the problem I have is that I don't have any 'official' proof of hours worked. My pay slips do not list hours work and nor do I have a employment contract being a director.

Does anyone know what other means I can use to prove my hours worked?

Many thanks in advance
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Comments

  • verveuk
    verveuk Posts: 19 Forumite
    Do you keep any sort of diary or calendar?

    Can you explain what you do to make up the hours you have reported?

    No I don't keep a diary of works carried out.

    I'm pretty sure I can explain what I do to make up the hours that I have reported though

    I guess as I have no official document to support my hours this is all I can do and just hope that they accept it. Otherwise if rejected I guess they will want all the contributions repaid
  • verveuk
    verveuk Posts: 19 Forumite
    How many hours have you told them you are working?

    What salary and dividends have you declared to them?

    Is it a working tax credit only claim? Or do you also claim child tax credits?

    Thanks for the reply...

    45 hours, but after receiving the letter and reviewing the hours its probably a little less at 40 hours

    Basic minimum tax salary which is £660 pm - plus any dividends I take - all my income is declared to them

    Its working and child tax claim
  • verveuk
    verveuk Posts: 19 Forumite
    If you have a child then to claim working tax credits you need to work 16 hours if single or 24 hours if a couple.

    There is also an extra element if you work over 30 hours. Anything over that is irrelevant.

    So all you need to prove is that you work at least 30 hours per week.

    I'm single with a child and certainly do work over 30 hours per week. So its just a case of proving it. Seems the best way is to document the 'tasks' I perform in the business and times it takes to do them and hope for the best

    Thanks so much for the quick responses - very much appreciated!
  • Marktheshark
    Marktheshark Posts: 5,841 Forumite
    Seventh Anniversary 1,000 Posts Combo Breaker
    Send them 40 hours of video camera footage to watch.
    I do Contracts, all day every day.
  • verveuk
    verveuk Posts: 19 Forumite
    Send them 40 hours of video camera footage to watch.

    Genius! :D
  • TELLIT01
    TELLIT01 Posts: 17,754 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper PPI Party Pooper
    You're a company director but you don't have any diary or work records to show what you have been doing? Surely you must have some kind of documentation for when you bill customers. That would at least be a start point.
    If you just go to HMRC and tell them they'll just have to believe you I suggest you take your cheque book with you.
  • verveuk
    verveuk Posts: 19 Forumite
    TELLIT01 wrote: »
    You're a company director but you don't have any diary or work records to show what you have been doing? Surely you must have some kind of documentation for when you bill customers. That would at least be a start point.
    If you just go to HMRC and tell them they'll just have to believe you I suggest you take your cheque book with you.

    Much of the work I do is back office (accounts, marketing, etc) so is not directly reflected in invoicing, We also sell products so its not possible to document any time on any invoicing

    When you say take my cheque book ...do you mean I'll have to be paying back any contributions I've received?
  • arcon5
    arcon5 Posts: 14,099 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Write yourself up an employment contract
    OR
    Amend your payslips to include this information - combined with a diary/rota listing the hours worked within the company which can be used to transfer hour info to the payslip.
  • I was asked by the tax credits people how many hours I work, as a company director of my own company, and I stated in a letter, the following.


    Typically, I will bill my clients for between 30 and 50 hours every week. In addition to this I will be travelling to and from clients for 8 to 12 hours a week. On top of this the business administration, accounts, marketing and other business related tasks take me about 2 to 5 hours a week. These hours fluctuate, so some weeks I could be doing 75 hours in total and others, 35 hours. The business has records of the hours I have billed my clients, and journeys I have claimed expenses for, but I have not recorded the total number of hours. I trust you will contact me if you require any further clarification.
  • verveuk
    verveuk Posts: 19 Forumite
    arcon5 wrote: »
    Write yourself up an employment contract
    OR
    Amend your payslips to include this information - combined with a diary/rota listing the hours worked within the company which can be used to transfer hour info to the payslip.

    I will see if I can get the payslips changed

    With regards to employment contract. From what I've read so far if I were to do one of these - would I then have to be paid the minimum wage by law? At the moment my salary would not be minimum wage
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