New rules for claiming working tax credits self employed

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  • sherbert17
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    No, I can't but neither can I post a link as to where it states it isn't possible.
  • sherbert17
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    Why haven't they contacted me if this was the case?
  • nannytone_2
    nannytone_2 Posts: 12,949 Forumite
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    beciasr yjr DWP and HYMRC are 2 totally different organisations, that on the while. rely on the claimant to tell them the complete situation.

    have you told the DWP that you receive tax credits and gave you told HMRC that you receive SA?
  • sherbert17
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    Yes, I am and find it theraputic. I would imagine that WTC would have stopped my claim before now if this is the case, and yet they haven't and I have been doing it since 2000.

    I posted asking questions about keeping records, but yet again I see this board being judgmental.
  • sherbert17
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    I fill in my renewal every year for WTC and state that I get so much in ESA and so much for self-employed earnings. DWP do 'talk' you know, and besides that once when I was having money difficulties due to a bank error, a lady at DWP stated you shouldn't be worried as you receive WTC too.
  • nannytone_2
    nannytone_2 Posts: 12,949 Forumite
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    no one is being judgemental... we are trying to work out your situation in order to avoid a MASSIVE overpayment.

    it is a matter of time until they look at your claim if you work year after year for £20 a week and still maintain that it is a viable business.

    as for record keeping ... yes this is an issue, as without records, you are merely guessing on your yearly self assessment
  • sherbert17
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    Thank you.

    Needless to say that if they do stop, I will no longer be here.

    Thanks to all who have commented. Crying now - nobody's fault. I am ill.
  • Icequeen99
    Icequeen99 Posts: 3,775 Forumite
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    FWIW, i think Sherbert is right. There is nothing in the tax credit rules that stop anyone claiming WTC and ESA together. It is possible.

    He is also correct that there is no hours requirement on the Permitted work lower limit.

    However, i suspect the reason for that is that it was unlikely they expected anyone to work for 16 hours or more and only earn £20 a week.

    I think the problem will come when tax credits investigate. I am astonished you got through a compliance check previously, but I would not expect you to pass under the new rules. You have not kept any records and it sounds like you may be deliberately charging a lower amount of money in order to stop yourself going over the £20. It sounds more like this is therapeutic and for social inclusion (which is what the objective of the lower permitted work level is) rather than on a commerical basis in expectation of profit.

    I wouldn't panic just now. Normally they only go back to the start of the current year (they can go back further but don't tend to).

    You should go and speak to an adviser and get some help to put together your information to respond to the letter and then look at whether you are entitled to anything else to make up the shortfall if you do lose WTC.

    Good luck

    IQ
  • nannytone_2
    nannytone_2 Posts: 12,949 Forumite
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    no one wants to upset you, but surely you can see that its preferable for people to give you the information that they believe to be true?

    only you can sort this issue out and ignoring it wont make it go away.
    do you have a support worker than can help you sort it out?
  • tomtontom
    tomtontom Posts: 7,929 Forumite
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    I'm genuinely intrigued what someone can do for 18 hours a week and only make £20. Roughly £1.10 an hour. I can't see how that could be classed as running a viable business?
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