Self employment/Tax Credits

[Mariah]

I know there are other threads on the subject of tax credits but I did a search and found a page of threads but not the specific answer I was looking for, so I am posting here.

Since the new changes have come into place regarding self employed people making claims for tax credits and having to prove their incomes, has anyone who does this work and declared themselves as self employed applied for tax credits say in the last 12 months and if so; (1) what paperwork specifically were you asked to provide (2) what checks did HMRC undertake (3) did it cause any problems when you showed that you are banking cash (especially if you are say a business consultant/not traditionally a cash based business) (4)how long did it take to process your claim and start paying you.

Sorry for all the questions and thank you in advance.

[The1theywant]

I'm doing this all they need is your tax reference code from self employment. Then you do tax returns as normal

[Mariah]

I'm doing this all they need is your tax reference code from self employment. Then you do tax returns as normal

But in due course, they will probably run a check and ask you to send in various paperwork relating to your self employment . I had a straightforward compliance type check last year by Concentrix and that related to normal employment. In that case it was easy to prove as I sent in what they requested for the period, e.g. payslips/bank statements/covering letter/proof of hours worked. My concern is that I have now seen elsewhere on other forums (literally since posting this not too long ago) that amongst other things self employed people have been asked to provide and send in;

Copies of adverts
Invoices (which ordinarily have both yours and the customers address)
Clients contact details (!!)
List of clients (!!) and times worked each week
Diary bookings
Bank statements
National insurance small earnings cert
Tax number

My worry is that they contact the customer and ask them to confirm the details on the invoice (breach of privacy for both the customer and me!!). Also, what happens when the customer says that they don't know you and have never had any dealings with you. If you declared yourself as a escort then none of this would actually be a problem, but for the ones who can't or choose not to disclose the true nature of their profession, then all this red tape is a nightmare.

[Lushblossom]

Concentrix is closing down end of May of this year i.e. 2017.  Which is just as well as they are very anti single parent and it has put a great deal of families in poverty and caused terrible anguish and turmoil.  Such is the delights of the Tory government.  We only have to read mumsnet to know that this is the case or talk to other single parents.

No doubt Theresa May will have something else up her sleeve fairly soon so it is good to keep proper records etc and abide by the law but I am just hoping they wont' set up such a draconian government body like that again but who knows.   We can't all work all hours God sends for a variety of reasons and we aren't all rolling in it even if we are escorts.  Everyone's circumstances are different. 

[The1theywant]

Keep accounts and you send in your accounts* you could change to a cash based business instead. Being and escort isn't illegal so I don't see the worry.

Tax credits do not require you to send in other documents* only your accounts if ever and they wait on your tax return.

[Mariah]

Keep accounts and you send in your accounts* you could change to a cash based business instead. Being and escort isn't illegal so I don't see the worry.

Tax credits do not require you to send in other documents* only your accounts if ever and they wait on your tax return.

Sorry I should have responded to this sooner. Thank you for your input and yes you are right that it's not illegal. However, on a few occasions in my life I have had to produce a tax return (for example in a couple of legal cases for the other sides solicitors to pour over) so would have been mortified if that had come out and they would have had a field day with it trying to paint me in a bad light. So I know from personal experience that very occasionally your job description can come out, so on that basis, I would never wish to be known in an official capacity as an escort/sex worker. For me personally, I've found that the less people know about you, the better. Thanks again. I might query HMRC on this one directly.

[The1theywant]

I was given the wrong Information. You have to jump through a lot of hoops to claim WTC as Self employed now and prove it's a profitable business!

I need ideas on what to tell them I'm doing ?

Adult entertainer work? Massage therapist, Alternative therapist? I don't know

I also have to wright a business plan

[Mariah]

I was given the wrong Information. You have to jump through a lot of hoops to claim WTC as Self employed now and prove it's a profitable business!

I need ideas on what to tell them I'm doing ?

Adult entertainer work? Massage therapist, Alternative therapist? I don't know

I also have to wright a business plan

That's literally what I thought would happen. I didn't want to get caught out myself with any difficult questions. Other than the business plan, did they ask you to supply any other documentation? What about Sexual Surrogate or Sex Therapist/Relationship Counsellor. They're pretty accurate descriptions :-)

[The1theywant]

I've registered as a 'therapist'. You have to upload your account monthly to them as well !on there online system.

I am going down the massage/therapist route. Will let you know when I get the pack but it takes about 28 days and the back office checks over everything to make sure it's legit