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 .

Have you been equally vague with HMRC about what your business is? "I'm in consultation" doesn't mean anything without some context. What do you consult on?

Hang on. Are you working from home, or a self-employed contractor/freelancer? Is the dispute over whether you are actually an "employee" and not self-employed? Do you genuinely tick all the boxes for self-employment?

Consultants in business are ridiculously well-paid, DH did it for a while through a company and the client was being invoiced over £1000 a day (DH didn't get that, unfortunately). If I were working at HRMC and there was a "consultant" billing themselves to clients at £10 an hour alarm bells would be ringing for me too.

Did you claim ESA while you were off sick?

Employees are entitled to tax credits while on sick leave for 28 weeks, while they're getting statutory sick pay, but I can't remember how that works for self-employed people. I could possibly look it up tomorrow, if no-one else knows.

On the plus side if they are saying there is insufficient evidence this may mean you have the opportunity to provide further evidence in an appeal. If I were you I would start writing a business plan tonight. There is the tick list on the front of the form ( as I said I have recently had to fill this in myself) and there is a box asking if you have a business plan. I assume you said no. I ticked yes and sent them the bare bones of my plan. This was genuine in my case as I realised my profits were not increasing and were not likely to without changes, so I had started a business plan. I did not want to go on forever making below NMW. The evidence I submitted was accepted. HTH

A consultation fee of only £10 an hour, less £5 expenses ????

Giving it up and sitting on a checkout. Sounds like it would be far less stress!

That's not intended to slag you off, just being realistic.

If you have been off sick did you claim employment and support allowance? Do you pay NI stamp? Again these are all relevant you are entitled to working tax credits for the first 28 weeks of sickness but maybe HMRC should have had this info during the year and may want evidence of why you didn't claim benefit.

Again I'm not asking for answers but you need to be prepared to answer anything that makes a difference.

Ask them how many hours do they think you are doing? If they think it is less than 16 then get an a few hours work to make them up to 16.

Exactly macarena. I ran a management consultancy whilst DC were younger so that I didn't have to work full time and £800 - £1200/ day is totally normal. That's why it's important to know what the business is

Also, if they're advising insufficient evidence, you need to consider what you submitted - did you provide sick notes to account for time off, any evidence for breaks in work e.g. holidays, invoices for ALL hours worked with detailed breakdowns, mileage if applicable, details of other benefits claimed? Have you ever sought advice from an accountant regarding your tax returns?

Hopefully with the period of sickness and allowable leave then you will be okay.

As stated I am not prepared to go into detail about my business what it is . Of course I have explained it fully to HMRC .
I went on a business course with them to start it and wrote a business plan with them.

I am not looking for advice on my business.

Maybe it's the juice or aloe vera business as lots claims to be consulting in that. Would explain the really low fee.

Don't worry about the debt to HMRC whatever you do. I have one after being overpaid for a year - I pay a miniscule amount each month. I could afford more and they know my income but have accepted my low offer. So that's one less thing to worry about.

I think it's appalling that they cut off people's money without warning. There is no excuse for that whatsoever, especially when children are involved.

Good luck op.

Just to confirm I have not claimed any benefits when sick or at all as I haven't wanted to rock the boat . My rent is so high I couldn't risk it all being suspended for 2 months with recalculations

I just battened down the hatches and tried to make my money last .

I have always worked hard and tried to provide for my child

Tax credits have been my safety net as my rent is so high all my earnings pay my rent .

I am utterly bereft this is happening to me and don't understand

This is confusing.

how I am actually going to get to work all week with no travel money

I assumed you were working from home. Why do you need to travel to do your consultancy? Why aren't your clients paying your expenses?

With the greatest respect OP, I think it's the business that's the problem not HMRC. Your business as you've described it is not financially viable. Your unwillingness to even hint at what field you work in and the income you report makes me think that it's not a business at all.

"I have not claimed any benefits when sick or at all"

Housing benefit, child benefit and tax credits are all benefits.

You dont have to explain exactly what you do. But "consultant" could really be anything. You're not damaging your business by explaining a wee bit more. I am more than happy to tell people who ask that I write web content for clients and through a few online portals, I do a wee bit of mystery shopping and work for some content mills when I've a slack week. My friend who is a business consultant will happily tell you (and HMRC) that she uses her accountancy and management background to go into businesses, help them with using new software for accounting and payroll, and identifying areas where they could make cost savings.

I get that you didn't start the thread to get advice on your business but it appears your business is REALLY struggling if you can only make £5.50 an hour profit. If you were a little more open, the collective brainpower of Mumsnetters might be able to suggest ways of improving that profit.

TheFatOfTheLand

Clients aren't going to pay expenses up front, OP may not have the cash for travel or petrol.

not a lot makes sense. Consultancy is usually paid extremely well not at £10/h.

OP said she said up the business due to childcare needs. But DD is all week in school and OP is only working 20h but paying childcare. I just don't get it.

I have huge sympathy in the sense that this must be a huge shock. But you would be much better off getting a job.
I am struggling to imagine what kind of consultant only charges £10/hour ... Is that the norm in your industry? We are only asking because we might be able to suggest better ways to use your skills and knowledge

Christ some people really like to kick people when they are down .

I don't want you to out myself .

Neither am I looking for advice on my business

I was looking for advice and experience on the workings of HMRC and their process .

Thank you to those who have offered insights and personal experiences . It will help me for my 9am call tomorrow when the specific department opens .

Where I live childcare all has to be paid upfront which is hard for someone like me who doesn't have hundreds lying around I sit up front costs .

So yes I have worked 20 hours some weeks but then had time off . So that yearly profit reflects all of that .

If you had 10 weeks or more off, then you fell below 16 hours per week on average over the year.

How can you have a childcare bill for hundreds if you only work 29 hours and your child is in school for 30?

Something doesn't add up hence HMRC have queries too hence the stopping of the benefits.

I'm not kicking you, I'm genuinely trying to help. If you call HMRC tomorrow with the figures you quoted here then you'll get nowhere because as lots of posters have said- it's just not viable.