Help ! Tax credit examination

Mand0891

Hi there

Any help would be very gratefully received i am in a panic at the moment.

I am self employed and have been selected to be examined for Tax credits. The list of evidence they want i cannot give them.
I do ironing and cleaning and work cash in hand, i only have a receipt book and my UTR number for my tax return.

Will this be enough evidence for them to continue my payment ?

If not, will i have to pay back this tax year ?

Am very worried and feel in a panic so any help would mean a lot.

Many thanks

Manichouse

What evidence are they asking for?

Mand0891

Hi they are asking for

Information on type of work/nature of business (which i can do)

business bank statements (i dont have an account),

Invoices (dont invoice people)

Summary of work done, bookings taken, appointments etc (which i can do part of),

UTRN (which i have),

copies of adverts (dont have),

breakdown of hours worked (have this in word doc)

Many thanks

verveuk

Mand0891 wrote: »

Hi they are asking for

Information on type of work/nature of business (which i can do)

business bank statements (i dont have an account),

Invoices (dont invoice people)

Summary of work done, bookings taken, appointments etc (which i can do part of),

UTRN (which i have),

copies of adverts (dont have),

breakdown of hours worked (have this in word doc)

Many thanks

Do you have any accounts, even simple money in, money out to substitute as bank accounts?

Your receipt book should act as your invoices

Can you get copies of your adverts?

Manichouse

Ok so standard stuff to prove you actually are running a business. When did you start up? How many hours a week do you work and what have you declared to TC? Also what income have you declared to them?

ALIBOBSY

Basically the very least a sole trader needs is a list of all jobs done, names and location (if you travel to them), amount charged and a breakdown of any parts and things other than labour.

You will need this info for your tax returns anyway, so surely will need to keep it.

I would send as much detail as you can and see what they come back to you about it.

Ali x

ALIBOBSY

BTW you don't have to have a business account as such, but it is advisable that you keep a separate current account for any cheques or direct payments.

Basically they are looking for some sort of evidence you are actually working self employed as opposed to simply making it up to claim tax credits and can justify the hours declared.

Good Luck
Ali x

Mand0891

Thank you all for your replies.

I started working June 2014.
I dont have any money in money out im afraid.
I have only put one advert out lately on netmums.
I work 16 hours per week which is what ive declared as its what i work while my daughter is at nursery.
I have always charged £6.20 but need to increase this as is now below minimum wage, i check when i got letter about examination.

Very worried if they arent happy with what i send that they will want money back, have read some stories on other sites.

Wonder if i ring them if they will tell me if what i have is acceptable?

many thanks again

Mand0891

***sorry started june 2013 not 14

Manichouse

Ok so you will have submitted your first years set of accounts or if not will do before 31st Jan!

You have a receipt book so will have an audit trail for the customers you deal with each week. You've created a time sheet that should tally with your receipt book which also doubles up as an invoice book. Do you give your customers receipts? Is it a carbon receipt book?

Are your customers word of mouth mainly? As explained earlier it's to prove you are actually running a business.

By all means give them a call explaining the nature of your business and that you are cash based. HMRC dislike cash businesses because it's a lot more difficult for them to prove you've had more than your declaring and vice versa!

Don't panic as long as you are being truthful and fully cooperative they cannot force you to pay back what you are entitled to

Mand0891

Hi

Thanks again manichouse.

I have done an online tax return so thats all done.
I do give customers a receipt from a book i bought at post office with a carbon copy. It says they dont take copies so am assuming i will have to send the book rather than photocopies.
My customers are people who have rung me from cards i have put up in local shop.

I am just concerned if they dont deem my evidence enough then i will have to pay back what i have had. I am doing everything that i have said but if they dont see its enough to prove i dont know how i would pay it back. Just hope someone will answer my questions tomorrow so that i dont have weeks of worrying as i suffer with anxiety attacks.

Thank you again for all your help