Tax credits stopped: "Info does not show trade/profession/vocation regular/organised?

Darksparkle

Just because this person doesnt deduct tax, doesnt mean you are self employed. Its the terms of the engagement that determine someone's employment status rather than a matter of choice.

Many UK employers take people on as self employed in order to avoid the obligations of being an employer e.g. PAYE, paying employers NIC etc.

If self employed and running a business, I would be looking for evidence of what you are doing to increase the business and your income. At the moment it seems you are reliant on this person in South Korea.

MsBlonde

I'm kinda in the same boat, however only just attempted to claim WTC

I am self employed but have a 30 hour contract per week for a company, who doesn't want me on PAYE.
I also do freelance work
Sell on ebay and my own website.

HMRC have sent me a tax credit examination form before even looking at my claim, but after reading this post... I probably will be rejected too.

Only difference is i'm earning over minimum wage at 30+ hours a week.

Mersey_2

It's worth pursuing.


Even though it may sound as if you've been rejected, it merely means the want more detailed information ie evidence of your hours. Many HMRC staff incorrectly say 'profits aren't enough' etc whereas the test for WTC is actually hours worked.


I can understand a lot are put off appealing; but, a good % do succeed as the rules, guidance and Tribunal caselaw are clear.

FBaby

You teach 25-30 hours a week, so 6 hours a day over 5 days at most, but you need over 1/3rd of the time to prepare? That sounds a lot considering you are not paid for this time and paid under NMW for the actual teaching hours.

xylophone

With TEFL and a degree. could you not find employment with a language school in the UK?

Or consider http://www.new2teaching.org.uk/tzone/students/thinking_of_teaching/am_i_too_old.asp

mongoose11

Darksparkle wrote: »

Just because this person doesnt deduct tax, doesnt mean you are self employed. Its the terms of the engagement that determine someone's employment status rather than a matter of choice.

Many UK employers take people on as self employed in order to avoid the obligations of being an employer e.g. PAYE, paying employers NIC etc.

If self employed and running a business, I would be looking for evidence of what you are doing to increase the business and your income. At the moment it seems you are reliant on this person in South Korea.

Right, thank you.

So I'm not totally au fait with this as you can probably tell.

Where do I stand now?

Do you think I am still entitled to WTC even though I may have gone down the wrong route?

mongoose11

FBaby wrote: »

You teach 25-30 hours a week, so 6 hours a day over 5 days at most, but you need over 1/3rd of the time to prepare? That sounds a lot considering you are not paid for this time and paid under NMW for the actual teaching hours.

I teach roughly 6 students a day. At the end of the day I go over the days class, prepare to summary of it to present to the following days class then go through the following days class and prepare the lesson plan.

That's roughly 20 mins each per student.

mongoose11

Mersey wrote: »

mongoose11 - As you may have read on these threads and the rightsnet forums, HMRC have sent a lot of these letters out since December 2015.


It appears to be an extension of an initiative to 'test' WTC claims. ie many are receiving 'examination' letters before payments even 'go live.'


I assume you were sent your Appeal rights in writing, separately?


Mandatory reconsideration is what you need to request in writing.


You can then Appeal this decision.


Acceptable 'evidence' usually means Facebook and other adverts and postings, names and contact details/addresses of customers and any bookkeeping/accounts' records you keep.


It appears that 'regular and organised' means you need to provide evidence of hours worked in more detail. This can include research, record keeping, advertising, meeting prospective new customers and so on.


At least HMRC didn't say your business wasn't a 'trade or profession' or doesn't show it's 'carried out with a view to profit' as they appear to be the two sent out to most WTC claimants. So you've half-qualified; but, need to send in more detailed information.

Just wanted to say thanks for breaking this down and making it clear what exactly is needed.

Darksparkle

mongoose11 wrote: »

Right, thank you.

So I'm not totally au fait with this as you can probably tell.

Where do I stand now?

Do you think I am still entitled to WTC even though I may have gone down the wrong route?

Personally no I don't think you qualify. You claimed on the basis that you are running a business, I don't believe it sounds like you are. If you disagree and believe you are genuinely running a business then you should appeal as suggested by Mersey. I can only comment based on what you have said here, obviously with actual evidence in front of me I'd maybe think differently.

If you were in fact employed and claimed as such, you still wouldn't qualify because your earnings would need to be at least NMW for at least 30hrs per week, you currently only average 18hrs.

You'd need to earn at least £871 per month (roughly $1212).

mongoose11

Darksparkle wrote: »

Personally no I don't think you qualify. You claimed on the basis that you are running a business, I don't believe it sounds like you are. If you disagree and believe you are genuinely running a business then you should appeal as suggested by Mersey. I can only comment based on what you have said here, obviously with actual evidence in front of me I'd maybe think differently.

If you were in fact employed and claimed as such, you still wouldn't qualify because your earnings would need to be at least NMW for at least 30hrs per week, you currently only average 18hrs.

You'd need to earn at least £871 per month (roughly $1212).

Thanks again.

I haven't disclosed everything here but for the 3 months of info they requested.

In terms of developing the business I have been setting up profiles at various teacher student foreign language platforms that has since garnered more work at higher rates but what I have stated above refers to 3 mths of 2015.

I have one more question though if that's good.

I am in the process of building an affiliate website in the mens health niche, whereby I will earn affiliate commissions from products which I don't stock. Right now I have yet to make an affiliate sale but this is something I do late in the evenings.

I see on the gov.uk that if your weekly wage is below NMW then you may be required to send a business plan.

I came across this example which is very close to what I do - this guy is slowly growing a content based website that initially starts off just garnering traffic and then slowly building a list and recommending products that fall into his niche.

http://www.bplans.co.uk/educational_website_business_plan/executive_summary_fc.cfm

Do you think this is something I should mention I do as well?

A whois will clarify it's my site.