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 .

Babyroobs I can only assume by your lack of empathy you have never been in the position of being cut off with no money to buy food. And people who are in a position to claim tax credits often do not have a safety net - the tax credits ARE their safety net.

OP, get on to the tax credit people first thing, and then get on to your MP - there is a dedicated MP/tax credits liaison office, and they seem to get things moving much quicker.

Matches the hours and income for a slimming world consultant and expenses would be hire as a room/venue usually has to be hired for meetings.

Personally, I don't agree with tax credits in any shape or form. I don't see why other people should have to go to work and pay tax so it ends up in someone else's bank account to bring up someone else's children. Just my opinion but then again I'm not a left wing nut job but not a wicked Tory either! Fire away mumsnetters, do what you do best- slaughter someone with an honest opinion which doesn't agree with yours!

Quiz queen I agreed with you until I ended up at the hands of a violent abuser and had to seek refuge and experienced it first hand .

If it is Slimming World (other weight loss schemes also available) then could you do some private 1:1 nutrition consultancy to help bring in more cash?

The same applies to any other 'franchise' type business - can you do any additional work related to the consultancy to increase your overall hourly rate?

Why are posters badgering the OP about the nature of her business? It really doesn't matter what she does. With evidence for the periods of sickness she can be treated as working for those weeks and the profit may be enough once the remaining weeks are calculated.

It won't be the first or last time that HMRC have made an error or need more information to make decision. I think the problem is that tax credits sometimes stop first and ask questions later leaving people without income for long periods of time.

Don't get cross, OP. I think it's a legitimate concern that even though your consultancy business was set up legitimately etc., you're earning far too little for HMRC to continue paying the top-up credits if it's year 2 or 3 of your business- they're supposed to support you to get started not prop up earnings indefinitely if you'd be better off earning NMW at an employed job.

Added to which, if you already pay childcare for fixed day meetings, when the whole point of the business was to avoid childcare by working flexibly in school hours, it's maybe not appropriate for you?

Anyway, make a business improvement plan, as advised, get all your facts and figures costed out - and reasons why they're low and will rise lined up, call in the morning to find out what the problem is, and also set in motion perhaps Food Bank referrals etc and looking at the local job ads to see if there are other ways to boost your income now. Tax credit stuff takes a while to sort, and if you can plan you'll be in a better place.

Why are posters badgering the OP about the nature of her business? It really doesn't matter what she does. With evidence for the periods of sickness she can be treated as working for those weeks and the profit may be enough once the remaining weeks are calculated.

Perhaps. But unless she addresses the underlying root cause which is that she is simply not making enough of a profit, she'll be back in exactly the same position next year.

I totally empathise with the OP and can't imagine how worrying it must be. Which is why it is so important to solve the problem. Asking HMRC to pay out for a business that can't pay anywhere near the minimum wGe will not solve the problem.

I know it will be hard but the OP has to be realistic. Either she very quickly makes her business pay (and since she won't say what it is, we've no idea if that is possible) or she needs to find paid work. I'm not saying that I agree or disagree with this government policy but that is the reality.

But Nana she said that she earned the same last year when she wasn't sick so that suggests that the business isn't viable which is why people are asking about the nature of the business to see if they can help.

Baby rooms are you really saying both you and your partner only work from 10-2 and make 8.5k between you but get benefits such as tax credits? I'm really surprised, to be honest and have to ask why you either don't work proper hours or one of you doesn't get a job? Seems unreasonable to expect state to provide and to call it a business if you do a total of 40 hours between you and only get 8.5 or 4.25k each for half time work. That's £4 an hour so not exactly viable.

I'm not getting cross . Just very down and upset and scared and trying not to get sucked into random people on the internet's judgment to something that is irrelevant when they have little facts .

I think I'm just mostly upset that they have cut it all with no communication.
No interim period to provide more evidence.

No phone call / email. I spoke via email and phone call with my case handler as I sent the documents registered delivery so am pretty shocked this has happened in this way.

It's a very scary situation to be in to lose money with no warning .

I have tried so hard to make my situation and money work and it's a shock when it gets to this point when I feel like I've crossed all the t's and dotted all the i's

They will require evidence that you can / are increasing your profitability.

"If the average hourly profit from your self-employed work is less than the National Minimum Wage, the Tax Credit Office may ask you to provide:

business records
your business plan - find out how to write a business plan
details of the day-to-day running of your business
evidence that you’ve promoted your business - such as advertisements or flyers"

www.gov.uk/working-tax-credit/eligibility

I used to be self-employed and I got a letter from tax credits last year (or maybe the year before that) warning that this was going to happen. It was a standard letter so people did have some warning.

My friend 'set up a business', did bits of work here and there but had no intention of running a successful business. He just wanted the working tax credits. He's just decided to fold his business, I'll bet tax credits realised what he was doing and put a stop to it.

You may have to consider that earning less than min wage and working so few hours isn't enough to support yourself let alone a child. You have responsibilities so can't afford to play at being a business women when it doesn't even cover the rent much less anything else.

If it's been three years and your income is not rising then surely that's a huge red flag.

It would appear you either need to find full time work or find part time hours around the SE.

I know it's scary and frustrating but you really need to put your energy into earning more money rather than fighting HMRC. Your current situation is just not tenable (again not saying that I agree with HMRC tactics but they are the current reality).

It's not really no warning though. They have been saying for over 2 years that tax credits for the self employed will be based on earning at least NMW for the number of hours they are required to work.

www.gov.uk/government/publications/revenue-and-customs-brief-7-2015-new-rules-for-the-self-employed-claiming-working-tax-credit/revenue-and-customs-brief-7-2015-new-rules-for-the-self-employed-claiming-working-tax-credit

Before that people were claiming WTC etc for being ebay traders when in reality they spent Sunday morning at a car boot sale and sold a few bits on ebay. Which is fine if you can make a profitable business out of it, but no good if your profit is £20 a week.

OP, I can't help but it's horrible relying on tax credits. And despite what others think it's not always easy to avoid being in that position. I've twice had them make mistakes and it's beyond stressful. I hope you get it sorted.

I do understand the shock, OP. And it's awful to be in your situation.

But perhaps now is the time to reassess in the cold light of day - now your DC is a bit older and at school, perhaps employment is actually more of a fit for your life now than being self-employed? It may take a lot of stress off to have a regular salary.

Anyway, take a deep breath and try not to think of the worst before you've talked it through with them tomorrow.

When you have the facts, you can always start a thread under a name change with all the relevant facts about your business, and how you could improve profits/show HMRC what you are doing. There sound to be lots of knowledgeable posters here who could help you navigate it.

There's some complete guff on this thread!!

OP, until you get a decision notice it's all speculation as to why they cut your award. So sit tight, they open the helpline at 8am (although presumably you've got to get DC to school) and fingers crossed you will find out what their reasons are. Then you can take it from there.

You need advice, not opinions. I have already recommended CAB's website and you can get more detailed advice from someone qualified on the subject.

Barbora is correct. Also OP if you have a caseworker that would suggest an investigation has taken place and HMRC have looked closely at your accounts so not totally out of the blue?

You will need help to appeal and claim your correct entitlements, what was your projected profit without sickness? I can see why other posters are asking if your business is viable.

Good luck

But she has spoken to HMRC margot who have told her that they do not have enough evidence that she has worked the hours. This is completely backed up by the limited facts OP has provided. So yes, she needs to wait for the award notice but she does already have facts so there is very little speculation. And frankly even without the award notice, working 20 hours a week for £5,500 is just not sustainable.

I work at the CAB. Is your nearest branch open tomorrow morning? Sometimes they do a phone back services, others have a walk in on Mondays. This is the sort of case we would take up on the spot and that's what the CAB is there for so please don't struggle alone, they will also advise on food etc for the next few days.

(PS - sorry that was a very important mistake - I am a volunteer adviser with the CAB - don't want to get anyone into trouble!!)

But definitely go there or call in the morning.