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

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.

have checked CPAG Working Tax Credits chapter. says lots about Tax credits make a judgement based on the hours you 'normally work' and that normally is not defined by WTC. The work has to be in expectation of payment (so volunteering hours not included)
"when working self employed hmrc says you can include not only the hours you spend providing the service or order, but also those that are necessary to your self employment e.g tips to wholesalers and retailers, visits to potential clients, time spent on advertising or canvassing, cleaning business vehicles, book keeping and research work"
Page 168 cpag
If your hours fluctuate: your hours may vary but you always do enough each week to count......OR
"However if your weekly hours fluctuate it can be more complicated (unless you are a term time worker) <they have special rules>. There is no rule on how to average your hours......"it can be a question of judgement.....If you have a regular pattern of work....they can use a representative period, or over a year. they give an example of someone with a regular pattern of 2 weeks on, 2 weeks off, and tax credits should average the 2 weeks hours over the 4 weeks if asked.

At the end of it its advice is that if you work anything other than 'normally' at least the minimum, then you should phone HMRC and ask them to average it over a different period. - of course i would follow any conversation up with HMRC in writing.

I would expect that if you add in any other regular normal time you spend relating to your work, e.g setting up your appointments, responding to new clients, driving to the home visits, cleaning equipment etc etc. you might find that you easily cover your hours

AutumnMoon

Not all my clients in my account book/diary have phone numbers next to them, as they've been clients for years & their number is in my phone. I couldn't fit their phone number next to their appointments now (no space) would this be a problem that only some clients have their phone number by their name?

AutumnMoon

FRESTER wrote: »

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

Did they telephone your clients? Not sure whether to send a list of names & phone numbers, but they haven't asked for this? They have asked for "a summary of work done or diary of booking taken and appointments made"

AutumnMoon

Also, this may sound stupid but can anyone tell me if this is relevent to me. There is a supplementary sheet that has a list of things to send in including a P45 or a letter from yourself if you've been on maternity leave or had periods of unemployment. One of the things it asks for is payslips, it says "your payslips from 6 April which should detail the number of hours you work & your hourly rate of pay" is this relevent to me in regards to my first job? I don't have payslips? I work from home, typing online, and i'm paid for the work I complete during my shift. Not hourly. This is paid into my bank.

NYM

There must be some way of linking what you get paid in relation to the quantity/hours/or whatever for the work you do.

How is your pay calculated if not based on hours worked ?
How long is your shift ?
Do you have correspondence (emails for example) from your employer ?
Is your income regular ?
The money paid directly into your bank will have some reference details that support you are being paid by 'A someone' Supply their full details, address, tel number etc.,

One thing I feel I must say and that is...do not suddenly issue receipts/invoices en masse to your clients. You must be able to produce something to prove you were due to see your clients even if it's just notes on your phone!
Are they regular ? How regular ? How many clients ? Is it reasonable to have the same treatments so often..?
Supply their details, tel number etc.

I'm sure you're worrying unnecessarily, but just be prepared to supply as much detail/info as you can.

notanewuser

The problem is that you're claiming a benefit that has a minimum hours requirement and you're saying that you're working that minimum. As I said before, your first job could take fewer than 8 hours to complete - you can't prove whether it takes you 8 hours. Then you say you have another 8 hours of work a week but can't prove that you do. I could easily hold a diary stating that I see clients for 8 hours a week and never leave the house. In that case I'd keep every record that proved I'd seen them - you travel, so mileage records, receipts for the products used however small, and I'd give receipts and pay the money received into the banks, even if it was cash. I could easily "create" a 24 hour job for myself now and use it to claim benefits if I wanted to.

Do you see what I mean?

AutumnMoon

Ok, well after nearly vomiting with worry I finally just rang Concentrix.

The Employer that I work from home for, I just rang them and they are sending me all my invoices out from April until now, they were very helpful. This will have all my payments on so that is now easily proven, along with the fact that the money going into my account is on my bank statements (Which I will highlight)

The guy from Concentrix told me i'm worrying about nothing. According to him the evidence I have is more than enough and he said you would be surprised at how little people generally send in. He said the whole purpose is to check I actually do work, he said it doesn't matter if my invoices from the first job don't state the hours that I work, he said they only care about the fact that I do actually work as a self employed person. He said my account book and a business card would be sufficient for my second job. He also said names and address are blanked out and they cannot legally call my clients.

I feel much better now, but a lesson has been learned here, better records and all receipts will be kept in future and no matter how small the amount earned it will be put through the bank. Although if I have my way I won't be self employed for much longer. Still hoping it's enough, for all I know that could just be his opinion.

OhWow

Marktheshark wrote: »

Who made the assumption that self employed people keep a diary ?
It is not a tax requirement to log your hours.
Yet another retrospective back dated change ?

Don't confuse paying taxes requirments to claiming benefits requirements. Tax Credits are benefits.

OhWow

NYM wrote: »

Genuine claimants have nothing to fear so why are you bringing Politics into this ?

btw....Concentrix were appointed by a LABOUR government.

As was ATOS and the ideas of medicals.

The one income based benefit payment was a Labour idea too.

I'm always surprised when people don't know this and perhaps imagine that all this will stop if Labour get back into government..

Mensch

NYM wrote: »

Genuine claimants have nothing to fear so why are you bringing Politics into this ?

btw....Concentrix were appointed by a LABOUR government.

I have no intention of starting a scrap with you, and I have never voted Labour in my life - I've been voting since 1970 so have had plenty of opportunity to do so - but anyone writing that genuine claimants have nothing to fear has probably never dealt with NTC Compliance teams, or if they have, they have been very fortunate indeed. And it will get worse as they see their jobs jeopardized by firms such as Concentrix.

One of the reasons the average waiting time for getting your call answered on the NTC Helpline has doubled in the last 12 months is because these teams tend not to bother answering their direct dial numbers after they suspend payments or, in extreme cases, terminate claims altogether.