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 .

[Bumdishcloths]

QueenLaBeefah that's all very well, but if fraud is taking place then giving the fraudster three months to find other means of income is a bit of a joke, no? (I'm not suggesting fraud in this case btw)

[QueenLaBeefah]

They could at least pre-warn. This doesn't sound like fraud but a not very successful business.

[clarinsgirl]

They did pre-warn. Everyone got notice in 2015 that the rules were changing.

[Dodie66]

I think self employed people do work for less than the minimum wage. I know I do. I looked up the rules for not being able to work while on Working tax credits because I was ill and you can be sick for up to 28 weeks and still stay on it,

[clarinsgirl]

Dodie - genuinely interested - why do you take the additional stress and uncertainly of being self employed for less than NMW?

[Dodie66]

Because I am disabled i can't do a job working for other people as I would not be reliable. As self employed I can do hours when I am well enough. Also as I am disabled I only have to do 16 hours a week which I can manage to do.
I enjoy what I do and make a reasonable profit

[BarbaraofSeville]

Of course some self employed people make less than NMW, especially at the beginning while a business is growing.

However, the Government has decreed that it will no longer prop up unviable businesses via working tax credits for years on end, especially when they don't look that much like real businesses, eg MLM, part time ebay trader or home beauty salons (remember the Question Time woman complaining about reduction in tax credits but it transpired that the bulk of her business was doing nails for her mates in her living room).

This is unfortunate for the OP, but is the reality of the situation.

[MacarenaFerreiro]

I do understand why some self-employed people are happy to work for less than minimum wage, especially is they're working at home. Working at home means you're not shelling out for commuting, childcare (in some situations), work clothes etc etc. In the early days of my business when I was trying to build a reputation my pay rates fluctuated hugely and there were some weeks I earned very little.

But the key difference is that I was never relying on my self-employment as the family's only source of income, and wasn't claiming child tax credits based on that income.

OP, nobody's attacking you and I think you're perceiving attacks as you're understandably shocked and feeling fragile. But once this crisis has passed, you need to do a lot of thinking about whether this is a viable business which you can continue with.

[Saiman]

Op i was self employed. I went back for different reasons, than money.

But you now have to prove you are working 16 hours (single parent) and getting paid at least minimum wage for those 16 hours.

Through my business i knew a few people who were self employed but never turned over a profit, so they could claim they were working 16 hours. The first couple of years i can understand not being able to pay yourself a wage or minimum wage. But when you get into your third year and cant pay yourseld and average of 16 hours per week, the business isnt viable.

Hmrc have clamped down on this because people were taking advantage. You havent given proof that the business is viable pr that you are working an average of 16 hours a week, earning minimum wage. Thats what it comes down to.

[Turquoise123]

good idea - I use online chat with HMRC and yes it's really good

[pinkrosebuds69]

1.24 hours now of calling the number on repeat and no answer .

I've spoke to the main line twice . Apparently there is nothing they can do , they can't call it send an email.

This is an absolute joke . I've been awake most of the night and crying for the last hour.

[CuntyKitchen]

Any joy with online chat? I always choose that over speaking to people on the phone in any company because you can get the whole conversation emailed to you afterwards.

[pinkrosebuds69]

Just to let everyone know including the judgy goaders that my business passed on 2 out of the three sections of compliance.

Where it failed was that I haven't sent in my business qualification evidence or enough receipts of expenses.

Thanks for all those who provided help.
I'm still in a really shit temporary situation with payment cut but I will be sending in the required info by registered post today .

[stopfuckingshoutingatme]

tears wont get you anywhere OP, I mean this kindly but you need to get practical and focussed. Take deep breath and try and et this sorted out

can you read the website and educate yourself as to what the threshold is and is not? You need to invest time to really get clear on the issue here.

also login here: www.tax.service.gov.uk/gg/sign-in?continue=/account

is your paperwork 100% in order. focus on that

lastly, it kight be that your type of work is not compatible with getting these benefits any more. Which mean its time to look at either extending the wok you do, getting more clients, or changing line of work. none of which are easy, but all are feasible

good luck, and stay focussed and calm and you can get through this

[YoshimiBTPR]

That sounds like good news OP - that it's something you can provide. Did they give you an idea of timescale to reinstate payments once your paperwork is in order?

[NoSquirrels]

Glad you have the reason, OP. Get the papers sent off, and I'd also perhaps visit CAB or contact GP/HV to see about food bank - this may not get sorted quickly so back up plans are good.

Also, now you've had this scare, do focus with clear sight on your business and see if you can improve profits or if it is time to look for something else (alongside the business perhaps) as it's a very precarious situation to be in and tax credits can get cut so suddenly that a back up plan could give you peace of mind.

[CuntyKitchen]

Good news OP, money worries are horribly stressful.

Will they require the same paperwork every year? Do you have access to a scanner? I'm wondering whether it would be a good idea to scan your documents if they need to have the originals sent.

[BarbaraofSeville]

Scanner?? Just take a picture of them on your phone and send them in that way.

[Bumdishcloths]

Even the 'judgy goaders' as you so graciously put it, were trying to help - clarinsgirl in particular, who I think you were unfair to.

Anyway, glad you've got to the bottom of it. Onward and upward.

[LadyinCement]

If the business is genuine and getting off the ground then I'm sure HMRC will be reasonable.

But they did need to crack down on some "businesses". I saw a while ago on MoneySavingExpert people advocating setting up an Etsy account to qualify for tax credits. You only had to sell a few pieces of crap to claim you had a business.

I am also intrigued by the poster who can work 10-2 in a "little business" - with her dh - and get tax credits. This sounds like a grand plan for everybody. She is duty bound to share.

[RB68]

Just to say please don't toss out all comments on here - you are not charging enough for consultations at £10 an hr UNLESS you also get sales on the back of this (so it is in effect a cost of sale that the customer subsidises) Even cleaners charge more than that these days

[BarbaraofSeville]

You only had to sell a few pieces of crap to claim you had a business

This is probably the purpose of all those Facebook tat sellers that are a source of ridicule on here. Until a couple of years ago, it didn't matter even if you sold little or nothing as long as you could vaguely claim to spend 16 hours a week coating shit in glitter.

[CuteDogs]

That's great that you got through and they've told you what you need. Did they say how quickly they can sort it once you've got it to them?

I second the idea of scanning them and emailing, though i'd also send recorded delivery so you have proof that someone has signed for it. They lost my stuff and told me it hadn't reached them, lost in post, but i had a name and time and date that i could provide as evidence that it was somewhere in their office.

Really hope you're starting to feel a bit better about it all. It is dreadful situation and i would be in tears too. It's so stresssful. But you're getting there and it will be ok.

[coffeemachine]

I am also intrigued by the poster who can work 10-2 in a "little business" - with her dh - and get tax credits. This sounds like a grand plan for everybody. She is duty bound to share.

you don't know people's circumstances. If you have e.g a disabled child, you only need to work 16h to get working tax credits instead of 24.

[WomblingThree]

OP, if all you wanted was head pats, you should have made that clear. You've been incredibly rude to people who have genuinely tried to use their own experience to help you, then played the martyr.

You immediately dismissed what I said, but I was actually right, in that it was totally pointless crying all night when all they wanted was some extra information for god's sake. It's made perfectly clear over and over again that you have to tell them about every single change in your circumstances, so you should have told them you were sick, as it directly led to your reduced income.

And @quizqueen, I'll bite. Fuck off. We've been entitled to tax credits (or the previous equivalents) for the last 20 years. My DH has worked full time for all but 20ish weeks of that, and I worked part or full time for 12+ years of it. We've paid in plenty in tax thanks, just in low paid jobs.