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Letter from Concentrix on behalf of HMRC regarding working tax credit (Self employed)

(136 Posts)
PeppermintLatte Wed 07-Jan-15 15:00:39


I'm not sure if I should be concerned and would really appreciate any advice?

I'm a single parent and I live with my Mother. I work 16 hours a week whilst my DD is in school. The rest of the school week I do voluntary work in the field I am hoping to eventually be able to get myself into (And then I won't need these bloody tax credits)

I received a letter last week saying they are acting on behalf of HMRC and they are doing random checks and I have been selected (not sure if this is true?) They want to know if i'm still self employed and if i'm still working 16 hours, which of course I am or I would have contacted them.

They have requested my UTR number, copies of any adverts placed, a letter outlining what I do for a living, a breakdown of my hours, a diary with any appointments in and also bank statements from April 2014 to November 2014.

I work 2 jobs, the first one is from home on the computer, I work 8 hours a week in this job and I am paid through my bank fortnighly. I'm not paid by the hour, I am paid for the work I complete in those 8 hours. It averages out to be about �140 every two weeks that goes into my bank account.

My second job is as a reflexologist, I also work 8 hours during school hours doing this. I have a small group of loyal clients, I am obviously not paid through the bank, not do I put my earnings through the bank as it's not worth it, it's not much money and I need it for petrol/food/clothes for DD etc. I do however, have my diary with all my appoitments in. I don't advertise so have no copies of adverts ( I advertised a few times last year, cost me a lot of money and I got no response - didn't keep copies of these adverts)

Do you think i'm going to be ok or wil they stop my tax credits? I'm so scared. I won't be able to live without this money. I was going to mention my voluntary work in the letter incase they wonder why i'm not working more than 16 hours, do you think this is wise?

Anyone else had one of these letters? Really worried as to why they would randomly selected me.

PeppermintLatte Wed 07-Jan-15 15:04:46

just to clarify - both of my jobs are self employed. i'm not employed by anyone.

Rockchick1984 Wed 07-Jan-15 15:08:08

Are you declaring your income from the reflexology on your tax return? If so then that and your appointment diary should be sufficient.

todayiamfat Wed 07-Jan-15 15:08:29

I have just been randomly checked too. But i was just applying for first time. Over xmas I had to find and supply all childcare receipts and contracts. All bank statements, utility bills etc.
I didn't have most of them because I shred everything and go paperless when I can.

When i rang up and spoke to them they were really nice and said print offs were fine and if statements had utilities on etc fine too.

Only sent off yesterday.

Did they not send you the hmrc leaflet thingy about the random checks?

TheFriar Wed 07-Jan-15 15:08:31

Have you told HMRC about the work as a reflexologist? Are you registered for both your self employed work and did you declare the revenue as a reflexologist?

LadySybilLikesSloeGin Wed 07-Jan-15 15:11:54

They are clamping down on people who claim to be self employed so they can get tax credits, but do nothing. If I remember correctly, they want people who claim to be self employed to be earning the equivalent of minimum wage, so they are doing random checks. They haven't picked you out on purpose, you're probably one of many from a random selection. I don't know whether they will stop your tax credits or allow you more time to build up your client base. Do you have copies of the invoices which you send out to your clients etc? Receipts?

PeppermintLatte Wed 07-Jan-15 15:15:51

got to dash to pick dd up, but yes, all is declared. i just don't quite earn minimum wage with the hours i put in, well i didn't last year, but this tax year looks like i might just make it.

PeppermintLatte Wed 07-Jan-15 15:17:33

no receipt, none of my clients want them as no one claims it back. seems pointless. they haven't asked for receipts though although they've mentioned invoices.

TheFriar Wed 07-Jan-15 15:21:11

Invoices for any products you are using for the reflexology will help to prove you ARE working as a reflexologist.
Do you also have any specific equipment you have bought for it ? I don't know, towels, a chair, soap, hand disinfectant?

TheFriar Wed 07-Jan-15 15:21:39

Do you have your accounts for this year too?

LadySybilLikesSloeGin Wed 07-Jan-15 15:25:07

Call them up if you're unable to supply the docs they want, they may accept something else. They just want to see that you're drawing a profit and not living off the tax credits while doing not a lot.

If this helps, I'm now self employed and PAYE, but I've only been a PAYE since Feb. I don't have advertising costs and I only have one client (in addition to the PAYE job I don't have the time for any more). I invoice the client, they pay me. All of the dates and times are on an online rota, and I have copies of the invoices and their payments show on my bank statements. I file a tax return containing the accounts for both, so it's all declared. It's taken me a good few years to start earning above the minimum wage though, which is normal (considering a lot of small businesses fail in the first 12 months).

Spindelina Wed 07-Jan-15 15:51:39

How do you do your tax return? As in, where do you look to find the figures from your reflexology to put on it?

Have you got a spreadsheet or a log book, or something like that? Or do you get the figures from your diary?

PeppermintLatte Wed 07-Jan-15 16:14:02

My first job is pretty easy to prove as money goes through the bank.

In regards to the Reflexology job I am a fully qualified VTCT Therapist, but simply not earning an awful lot. There aren't really any costs for products, my Mum bought me the massage bed as a Birthday present 3 years ago, all I require to preform reflexology is some peppermint foot spray, grapeseed oil and a few towels. I have no idea where the receipts would be for these products (I should have kept them, I know) as I bought a large peppermint foot spray for �8 and still haven't used it. I buy my grapeseed oil out of my local supermarket as and when I need it.

They have asked for my bank statements that cover April '14 to November '14 so would assume they want my diary for this period too.

I record my appointments in my account book then simply add up what i've earned that week. I then add my work from home job into the accounts every two weeks (after i've seen what's gone into my bank) and total it up. This is how I see what I need to declare on my tax return. I will be sending this account book into them.

I don't invoice my clients, most of them are elderly. Perhaps I should have been issuing receipts, but as I say no-one wants them.

So worried that they will think this isn't enough evidence, although as I say they haven't asked for receipts. My profit last year was �4940, not sure what it will be this year yet, but they are only asking for info from April 2014 to November 2015.

This is what they've asked for -

Information on the type of work and the nature of the business

The UTR reference number received after registration for S.A (I obviously have this, been S.E since 2011)

A summary of work done or diary of booking taken & appointments made

Copies of any adverts placed

A breakdown of the hours worked each week

Invoices for any work done

Bank statements for the business acct covering the period from 6th April 2014 to 30 November 2014 (Will be sending the info of the account I get paid in which is a normal current account. I closed my business account 2 years ago as fees were ridiculous)

Thank you so much for your replies.

LadySybilLikesSloeGin Wed 07-Jan-15 16:20:24

Information on the type of work and the nature of the business - you write down what you do for both jobs and what this involves. You're allowed to do more than one sort of job.

The UTR reference number received after registration for S.A (I obviously have this, been S.E since 2011) - you should have this, it's your unique tax reference number.

A summary of work done or diary of booking taken & appointments made - as above. Give them a list of dates and names of clients.

Copies of any adverts placed - doesn't matter.

A breakdown of the hours worked each week - send them a copy of your diary.

Invoices for any work done - may be helpful if you did retrospective invoices but I'm not sure if this is allowed, so you need to ask them. This is more than likely to be a standard request but if you don't issue them, then let the IR know.

Bank statements for the business acct covering the period from 6th April 2014 to 30 November 2014 (Will be sending the info of the account I get paid in which is a normal current account. I closed my business account 2 years ago as fees were ridiculous)

LadySybilLikesSloeGin Wed 07-Jan-15 16:23:03

They just want to see that you're earning the minimum wage/around about/more than for both jobs added together. If one job is below, one is above, then that doesn't really matter. They want to know that you're doing the work you say and that you're not living off only the tax credits. Hope this helps smile

PeppermintLatte Wed 07-Jan-15 16:35:54

It does help, thank you. I can only send in what I have, which is my account book, UTR number, bank statements and the letter/breakdown of hours. Should I ring them up and explain I don't have invoices, or should I explain that in the letter to them.

My account book has my appointments in, the client's name, the address where i'm going, what treatment it is (I ocassionally have them ask for an Indian head massage instead) and how much i've earned that day. I just hope this is sufficient.

QoFE Wed 07-Jan-15 16:37:20

DP was investigated for exactly this last year and the year before (apparently at random and never taken any further after sending the required evidence) - but the letters came from HMRC directly and he was assigned a claim investigator who dealt with the whole thing personally.

Are you sure the letters are legit? Have you spoken to HMRC to check?

LadySybilLikesSloeGin Wed 07-Jan-15 16:45:50

Call them up and ask them, they may suggest something else instead.

They may have outsourced it, QoFE. It's always good to check though smile

PeppermintLatte Wed 07-Jan-15 21:59:41

Yes, they have outsourced apparently.

I rang Concentrix, they said they are working on behalf of HMRC. They are based in Ireland.

Do you think they'll take my WTC away because I don't have invoices? Or do I think what I have is sufficient.

The say on the letter they want to check if i'm still self employed and working 16 hours per week. Not sure if I should mention voluntary work?

PeppermintLatte Wed 07-Jan-15 22:00:22

Do you think what I have is sufficient I meant!

LadySybilLikesSloeGin Wed 07-Jan-15 22:02:29

You're best off calling them and asking. You are allowed to do voluntary work, you just need to show that your income is improving and that you're not claiming but doing naff all.

May be wise to look at the last 2 posts by the way wink

PeppermintLatte Wed 07-Jan-15 23:27:54

Thank you Lady!!!

LadySybilLikesSloeGin Thu 08-Jan-15 13:10:18

I hope you get it sorted smile

louise121209 Fri 09-Jan-15 19:35:43

Hi i also received a letter yesterday, i am employed by a company and they wanted me to confirm i work 31 hours a week. Then they wanted the last years pay slip and also a copy of my employment contract. I have lost 3 of my wage slip so had to phone them up. They told me i had to give them permission in a letter so they can contact my employer. I must admit it did worry me i could not understand why i had the letter I've been with the employer 4 years and nothings changed if it had i would of contact them. It does make you worry I'm also single and a mum of 2 working full time.

PeppermintLatte Sat 10-Jan-15 21:53:20

Hi Louise, and you're employed, not self employed? They must just be doing random checks to everyone that receives tax credits?

I've been worried sick, cannot wait for the day I don't need them.

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