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 .

[pinkrosebuds69]

Childcare I'm referring to holiday care , half terms , Easter , summer holidays , Christmas

My child is in child care after school two days a week for meetings I attend .

[clarinsgirl]

You have had good advice on HMRC processes but their processes all lead back to the profitability of the business which you seem unwilling to discuss so people can't help you.

[Nanna50]

Not rocking the boat is not an option when claiming benefits. The income you could receive while you were on the sick actually increases your annual income which in turn shows your business is more viable, it also makes it easy for HMRC to allow the 28 week sick period.

Do you have access to other documentation to prove you were on the sick? You don't need to send fit notes to HMRC during your claim but they may want that evidence now, particularly as you didn't make other claims.

In benefits you have to claim the right ones for your circumstances as often you lose out by having to overpay the one you claimed and its too late to claim the one that you should.

I hope you get some good advice to help you claim the right support and negotiate with HMRC.

Ultimately to claim working tax credits you have to work the required amount of hours or be treated as working those hours and if not, you don't qualify.

It is harsh and historically Tax Credits have taken the claimants word and self declaration, and this has given some people a false sense of security.

[MacarenaFerreiro]

I'm starting to doubt that OP is self-employed... set days for meetings, set hours - sounds more like employment to me. OP are you really, really sure that you tick the right boxes for self-employment? Lots of unscrupulous employers will tell people that they're self-employed contractors when they're not.

I also agree that the lack of profitability is the key to this whole mess and you really do need to tackle it or you'll be back here next year, unless you have a concrete plan to double your profit. At least.

[Marmitelover55]

I think your expenses are very high at £4.50 per hour if you are only charging £10 an hour and would suggest you need to try to increase your hourly rate. Most consultants don't have expenses at such a high % of their rate hourly rate and I don't think this sounds feasible in the long term. I think you need to be prepared for detailed questions from HMRC about your expenses.

[clarinsgirl]

Lots of unscrupulous pyramid schemes also convince people that they have their own businesses. OP- is your business part of a pyramid scheme also known as multi-level marketing? If it is there is loads of excellent advice on Mumsnet to help you extract yourself and improve your financial position. If not, just ignore me.

[Tanith]

Have you checked online whether or not you're entitled to the free 30 hours childcare?

The reason I ask is because I've heard reports from several nurseries about the online enquiry cutting off people's tax credits if they apply for tax free childcare at the same time:

"PLEASE urge your parents to be VERY careful when applying for the 30 hours and tax free childcare as their Tax credits will automatically STOP.

There is no way to tell for definite what their best option is, the Childcare Choices site will give all available options and will tell parents what they can't claim together (i.e. they can't claim Childcare vouchers and tax free childcare together)

We are hearing of parents who did not realise that applying for the 30 hours / Tax Free childcare would mean an automatic stop to tax credits, this then results in a new claim needing to be made, which takes time!

Whilst going through the application process there is a small box advising that continuing will result in tax credits being stopped, however it is very easy to miss it and to continue anyway. "

[missadasmith]

Have you checked online whether or not you're entitled to the free 30 hours childcare?

DD is in school. Hence the confusion about the sky high childcare with a child 30h in school and a 20h job.

[Sawbridgeworthmum]

This screams MLM to me. What type of consultancy charges £10 per hour?
I have people on my Facebook who are forever living/juice plus who also say they are CEO and own their own business. Hmmmm

[clarinsgirl]

Me too Saw. If it is a well known MLM then that would set alarm bells ringing at HMRC as they know that they don't make any money despite the stories of living in castles and driving white range rovers.

[Jux]

It seems to me that there is no rhyme or reason to the decisions the Tax Credits people make. I expect there are sensible rules there but, boy, are they obscure!

[pinkrosebuds69]

As previously explained the business was set up with help of business enterprise scheme/ course and a business course through the job centre . All legit. No schemes . No pyramid .

There is so much scare mongering on this thread and some incorrect facts and figures

Thanks to all those who have sent good advice .

I am hoping it will be an error that is easily rectified .

[clarinsgirl]

But from the information you've shared, it's not an error.

[TheFatOfTheLand]

My child is in child care after school two days a week for meetings I attend

Slimming World.

[suffolknclose]

You're the only one to provide the facts and figures OP and they just don't stack up at all I am afraid

[MacarenaFerreiro]

OP it might be legit but it's not working.... You're not making enough money to keep HRMC happy which is why you're in this pickle. £10 is an incredibly low hourly rate and that should be your starting point for making changes.

[Bumdishcloths]

I wondered Slimming World or similar. But tbh regardless of what kind of consultancy OP is doing, it seems the hours etc are not adding up to HMRC which is what OP needs to address.

[BarbaraofSeville]

Are you sure that you are charging enough for your services? A £10 hourly rate when you have expenses of £4.50 ph is simply not enough. Do you have any competitors and what do they charge?

You should charge enough to cover your expenses and leave you earning at least NMW, preferably more as you need to cover holiday and sick pay that you are not entitled to, being self employed.

[steff13]

Q

[steff13]

Oh my gosh, that was an accidental response. Sorry.

[clarinsgirl]

If it's all legitimate, why are you so unwilling to share? You don't have to name the business, just the nature of it. The fact that you've haven't given any clue at all about what sort of work you do is making people assume it's not a real business, especially since the only consultancy businesses that spring to mind that return so little are MLMs.

[Marmitelover55]

We pay our cleaner £10 an hour. We provide her cleaning materials though so her only expenses are travel costs (which we don't pay).

[TrollMummy]

While I sympathise with your situation OP from the figures you have given it appears that your business is not a viable source of income. It is not sustainable for HMRC to sunsidise this while you could feasibly earn at least minimum wage in paid employment.