I'm so worried and upset and horrified this is ok

[pinkrosebuds69]

HMRC have just cut my working tax credits completely . I am self employed,.
I don't understand I sent them all the paperwork for the necessary checks . All early and renewal early along side my tax return 6 months before the deadline .

Apparently they "don't have enough evidence to support my hours ) and have cut them completely .
I only know this from calling up myself to check .
This decision was made with no call to me. The decision was sent out last Tuesday but I've still not received ( apparently it can take 7-10 days )
Until I have the letter apparently I can't appeal or even question it .

I am in tears , I need my tax credits to pay child care and for food I don't know what to do or where to turn or what I've done wrong. I can't buy any food now tomorrow for the week .

How long have you had your own business? if this is only your 2nd year, and so last year was your first, it could be they based your payments on the financial year before your first claim. This happened to a friend- though not self-employed. She changed jobs 1/2 way through the financial year and that 1st year her award was higher from subsequent years.

I'm not saying it is the case for you though.

HMRC can look into their accounts if they want to. Elendon your not helping the tax payer at all.

It is my third year of trading .

I have not fiddled anything .
I am a lone parent .

I set up my own business to save on childcare .

I am so stressed out and upset .
This government really does it all can to stick the knife in where they can with no warning .

I'm so sorry. Appeal first, then talk to your local councillor and local MP.

While I don't know you and am making no assumptions or assertions about your situation, EVERYONE should bear this in mind.

When the government is already ripping the poor off in every conceivable way, benefit fiddling is a) entirely justified and b) a survival tactic. Benefit 'fraud' ( at least some of which is honest mistakes) is far, far less of a sum than that which is sitting there in unclaimed benefits, and utterly negligible when compared with the sum the government loses in unpaid corporate tax and tax evasion by the rich.

I think YABU to be so upset until you know what it is about and why they have been stopped. If it is just a matter of proving hours worked you should be able to sort it. Unfortunately with tax credits they can stop or cut them at any time so it's good to have a bit of a safety net ( I understand that's easier said then done). Until it is sorted you will need to prioritise bills and food. Speak to your nursery/ childminder.

any chance you can change into employment? this sounds like a nightmare.

I have no family help and minimal input from my child's father . Sporadic maintenance and Minimal contact.

I literally cannot afford to work for a company as I can't afford the pre school and post school childcare plus holiday cover .

I have £29 a week to live off without my working tax for all food and bills and child care.

My business earnings pay my rent . Things are really dire

pink I understand your stress I am in a similar situation to you. I went self employed due to child care issues. I have also just had my tax credits claim checked. I know how stressful it is but you haven't yet replied about the level of profit you are making. Could it be due to this?

I make £5500 profit a year .
Same as last year give it take .

OP you've been asked repeatedly, what line of work is your business in? If you answer this people may be able to make some helpful suggestions.

I was self employed a few years ago. Year 2 of claiming tax credit was the the third year of my business. They wrote to me saying they didn't believe my hours were being met - for me it was 30 a week due no DC in the home. I was able to sort it out with them but it took about 3 months.

Are you not getting a decent amount of your rent paid by claiming housing benefit. Are you sure you're claiming everything you can? if you worked for a company you would still get help with childcare costs.

Child maintenance is no longer counted as income though.

Do you have income support and child tax credits?

How many hours did you work a week to make roughly £100 profit?

Don't get so worked up. It really isn't worth missing a night's sleep over. If you haven't had your letter yet, then you won't have been assessed. That's not how it works, so I'm fairly sure someone has made a mistake.

I'm not quite sure who managed to tell you it had been stopped, but not why. Surely it's all the same department. The people who work there are individuals, not "the government".

Stop panicking and just phone in the morning. Yes, I know that's easy for me to say, but I've been on tax credits in one form or another for 20 years, and cock-ups are par for the course unfortunately 😕

30 hours x 52 weeks per year at £6.50 per hour = £10,140

If you've told them you're working 30hrs per week and only earning £5,500 they are going to treat you as if you're earning £10,140 or not working 30 hours a week.

pink, I don't have family support either. 2 children, one severe learning diffs. I do work in low pay. You get actually quite a bit of help with childcare under tax credits if your pay is low. I would consider it. And your DD will start school at some point and also get a certain amount of hours in free childcare after 3.

Yes that is below the minimum wage you should be making
16 hrs x £7.50 x 52weeks

This could be why. I also make below NMW. You have to show them that you are taking steps to increase your income.

does the government pay your nursery fees? Have you increased those recently (the nursery will report back if you have).

Step 1: phone at 8am and tell them you have not received the decision notice and you need to know the DATE and contents of the letter. Note name of person you spoke to etc. Check if it is just the WTC that has stopped. You may still get CTC.

Step 2: write a detailed letter challenging the grounds for their decision and ask for a Mandatory Reconsideration (MR). Post this by Signed For delivery and ensure it reaches them within 30 DAYS of the date of the decision letter.

Step 3:
Contact your local CAB for a food bank voucher and advice on other benefits you can claim whilst waiting for the MR.

Step 4:
If HMRC uphold their decision in the MR you again have 30 days to take it to formal Appeal.

If you need advice along the way start here:
www.citizensadvice.org.uk/benefits/help-if-on-a-low-income/working-and-child-tax-credits/tax-credits-appeals/if-your-tax-credits-have-stopped/

www.citizensadvice.org.uk/benefits/help-if-on-a-low-income/working-and-child-tax-credits/tax-credits-appeals/challenging-a-working-tax-credit-or-child-tax-credit-decision/

www.citizensadvice.org.uk/benefits/help-if-on-a-low-income/working-and-child-tax-credits/tax-credits-appeals/appealing-a-tax-credits-decision-at-a-tribunal/

CAB or a local advice centre with welfare rights advisers may be able to help you draft the letter but make sure you tell them what the deadline is.

Good luck OP

Wow about not getting worked up. It's frightening when money you rely on to live disappears without explanation.

If that is your profit on top of expenses your earnings are really low and you may be entitled to help towards rent and council tax.

The first three years of business can be tough. I was self employed for seven years and my break even was £1500 a month. So glad I don't have that stress anymore.

HMRC have possibly decided that you are not genuinely and effectively self employed. It is under new rules which is basically aimed to stop people working minimum hours for minimum profit and then claiming maximum tax credits.

It will affect everyone eventually but they can't do everyone at once. The tax credits are very generous to low paid self employed workers.

You should also be claiming housing and council tax benefit and if you are not then do it now online.

You can afford childcare if you work for an employer as you can claim 70% of your childcare costs thousands of working single parents manage to do this.

You will need welfare benefits advice if you want to challenge their decision, they will advise what evidence is relevant.

Check all the details they have, while you are on the phone to them.

I once got sent a tax credits repayment demand for 6k (which was half my yearly income at that point). Some fat fingers somewhere had deleted one of my dc from the system, so it looked like I was getting twice as much credit as I should be entitled to.

wombling - of course the decision has been made. The decision has to be taken before the letter is sent and the OP has simply spoken to HMRC after the decision has been made but before the letter has arrived.

From the additional information posted it sounds like the number of hours are being questioned because the profit in the business does not support 30 hours per week at NMW.

Some good advice on here with step by step guide as to how to proceed.

If you pass the security checks on the phone, HMRC should be able to give you all the details regarding why they've been stopped (if they actually have). Details here re: examinations - www.litrg.org.uk/tax-guides/tax-credits-and-benefits/tax-credits/what-if-my-claim-checked-hmrc