Letter from Concentrix on behalf of HMRC - Self employed re- Working tax credit

eadieb

and as a side issue. I think the government will start making more effort to get people to prove what they are doing because you would be surprised at the amount of people who have lost their regular jobs in recent years.....spent some time on JSA.... realised that was hell.....so then quickly set up as self employed as an alternative. I think the government statistics on jsa claimants have gone done but self employment has dramatically increased.
plus it is in preparation for universal credit, which is supposed to be phased in over the next few years for replacing tax credits. that will have very different rules about self employed earners and is a whole separate topic that you should look into over the next year. especially if you think that in the long run you will be working under 35 hours per week on minimum wage.

AutumnMoon

eadieb wrote: »

self employed earnings are usually averaged accross a reasonable period and more often for over 12 months. So even if there are slight variations of hours I dont think it will be an issue.
In the future, for the purposes of Tax Credits, I would suggest opening a separate bank account. You dont have to have a business account, it could be just another standard bank account but use it only for all your business incomes and outgoings, and then pay yourself amounts from it, maybe weekly (just a standing order set up on you internet banking). that way, there will be a simple dated paper trail of information that will be easy to submit in future. I always suggest to people to keep a diary, especially when they spend some of their working time not just with clients. e.g travelling, researching, administration, banking, accounting, advertising, booking etc etc.

Thank you, I think i'll do just that. Can I ask you, in all honesty, do you think what i'm submitting is enough or is it likely they won't see it as sufficient & will cease my WTC?

To be honest i'm desperately hoping Labour get in & scrap UC if they can. I think for people like me UC will be a disaster.

notanewuser

Do you keep records of mileage? Very foolish not keeping receipts. Basically the only thing that says you're working 8 hours is your own, which you could easily falsify. Also, the other work could presumably take you fewer than 8 hours per week to complete. So you can't prove how many hours a week you're working at all. I'd be suspicious just by the fact that you're not keeping records of things that would be needed for a tax return!

AutumnMoon

notanewuser wrote: »

Do you keep records of mileage? Very foolish not keeping receipts. Basically the only thing that says you're working 8 hours is your own, which you could easily falsify. Also, the other work could presumably take you fewer than 8 hours per week to complete. So you can't prove how many hours a week you're working at all. I'd be suspicious just by the fact that you're not keeping records of things that would be needed for a tax return!

No I don't keep records of mileage because I don't claim it back as expenses. Plus they haven't asked for receipts anyway. I don't earn enough to pay tax, therefore I see it as pointless to claim for petrol costs. I believe I do keep what is needed for my tax return, a record of my income.

AutumnMoon

Also, whilst i'm grateful for the replies, no one is actually answering my questions!

NYM

I thinks that's because no one can give a definitive answer to your questions.

Gather all your paperwork, bank statements and any other proof you have of self employment and hope it's sufficient to satisfy HMRC that you are engaged in a legitimate business.

AutumnMoon

Ok, would anyone be willing to answer this question for me?

Just dug through my old files & found 3 invoices for the last adverts I placed, this was back in 2012, each advert cost me £70, each advert brought me no custom, hence the reason I have never advertised again, besides leaving business cards in local businesses. I have an invoice for the first set of business cards I ever had made, again dated 2012. At this time I was renting a room, I wasn't mobile, so all invoices have the business address on. Shall I send them in even though they are 2 years old, explaining this was the last time adverts were placed?

As I mentioned earlier, I have had cheaper, more recent business cards printed since off Vistaprint, but my friend designed them for me & had them sent to her address. I could print these invoices off & send them but with them not being in my name I would imagine it's pointless?

FRESTER

AutumnMoon wrote: »

Thank you, I think i'll do just that. Can I ask you, in all honesty, do you think what i'm submitting is enough or is it likely they won't see it as sufficient & will cease my WTC?

To be honest i'm desperately hoping Labour get in & scrap UC if they can. I think for people like me UC will be a disaster.

I think it would help you further if you do invoices and send them in.
The more you send the better.

eadieb

blondebubbles wrote: »

Hours and income are two separate issues.

Income is recorded for the tax year. However if you don't work the required hours for 4 weeks or more then you would no longer be eligible.

I may be getting this mixed up with a different benefit. I will have a look in cpag

eadieb

AutumnMoon wrote: »

Ok, would anyone be willing to answer this question for me?

Just dug through my old files & found 3 invoices for the last adverts I placed, this was back in 2012, each advert cost me £70, each advert brought me no custom, hence the reason I have never advertised again, besides leaving business cards in local businesses. I have an invoice for the first set of business cards I ever had made, again dated 2012. At this time I was renting a room, I wasn't mobile, so all invoices have the business address on. Shall I send them in even though they are 2 years old, explaining this was the last time adverts were placed?

As I mentioned earlier, I have had cheaper, more recent business cards printed since off Vistaprint, but my friend designed them for me & had them sent to her address. I could print these invoices off & send them but with them not being in my name I would imagine it's pointless?

I would stick with the stuff they have asked for and keep exta info to hand in case you need to appeal.

You are better off keeping it all simple and easy to understand. If they come back to you and continue to question it, then respond to what they ask.

You need to submit all you have. Maybe if anything missing or need further explaining, do a short covering letter. See what happens. If all goes well then plan to improve things to make it simpler and unquestionable for the future.

They might phone up a few of your clients to check that you do see them. same as they used to phone up childcare providers.

If you get any sort of negative decision then you should promptly appeal it within 28 days. this must be in writing, keep proof of posting.