Hi. I applied for 30 free hours in August 2017 and had it authorised no problem. I am pt employed and earn 17k a year.my partner is self employed . Owns a limited company and is the only employee in the LTD company. He is not PAYE but CIS (construction industry scheme) and earned tax limit with dividends etc.HMRC have no issues with him being CIS and is under
no legal obligation to go PAYE. Income for both less than 100k.
Despite no changes in tax status for either of us since 2014 HMRC have had a sudden change of heart (Last 3 months) and say we are not qualified. They reckon its because my oh cant prove income but we sent them bank statements, UTRs, company UTR. We have an accountant who advises that my partner should continue to stay as CIS but im a bit narked as to why they have decided to stop this. Why now? Where is the small print that says directors who are also an employee can't apply for 30 free hours?
We are looking to appeal but is it worth getting a solicitor as i see no change of entitlement in HMRCs rules since we applied and they seem to have changed their mind.
This may be posted elsewhere on mn.
Thank you!!!