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Original poster

Letter from Concentrix on behalf of HMRC regarding working tax credit (Self employed)

135 replies

PeppermintLatte · 07/01/2015 15:00

Hi,

I'm not sure if I should be concerned and would really appreciate any advice?

I'm a single parent and I live with my Mother. I work 16 hours a week whilst my DD is in school. The rest of the school week I do voluntary work in the field I am hoping to eventually be able to get myself into (And then I won't need these bloody tax credits)

I received a letter last week saying they are acting on behalf of HMRC and they are doing random checks and I have been selected (not sure if this is true?) They want to know if i'm still self employed and if i'm still working 16 hours, which of course I am or I would have contacted them.

They have requested my UTR number, copies of any adverts placed, a letter outlining what I do for a living, a breakdown of my hours, a diary with any appointments in and also bank statements from April 2014 to November 2014.

I work 2 jobs, the first one is from home on the computer, I work 8 hours a week in this job and I am paid through my bank fortnighly. I'm not paid by the hour, I am paid for the work I complete in those 8 hours. It averages out to be about 140 every two weeks that goes into my bank account.

My second job is as a reflexologist, I also work 8 hours during school hours doing this. I have a small group of loyal clients, I am obviously not paid through the bank, not do I put my earnings through the bank as it's not worth it, it's not much money and I need it for petrol/food/clothes for DD etc. I do however, have my diary with all my appoitments in. I don't advertise so have no copies of adverts ( I advertised a few times last year, cost me a lot of money and I got no response - didn't keep copies of these adverts)

Do you think i'm going to be ok or wil they stop my tax credits? I'm so scared. I won't be able to live without this money. I was going to mention my voluntary work in the letter incase they wonder why i'm not working more than 16 hours, do you think this is wise?

Anyone else had one of these letters? Really worried as to why they would randomly selected me.

OP posts:
Nerf · 11/01/2015 09:41

It does sound a bit wafty and not run properly in terms of records from what you've posted here.
You should have two sets of simple accounts, one for the computer work and one for the reflexology, with all the income at the top and then expenses - mileage, product, etc - coming off, leaving your taxable income. Both of these would go on the tax return.
It just sounds like a bit of a pocket money type job, where you aren't looking to increase the client group and therefore income.

LadySybilLikesSloeGin · 11/01/2015 11:07

16 hours is the threashold for a lone parent, chantry, no working tax credits for 15.5 hours, working tax credits for 16. All they can see is your income but if you're earning above the minimum wage then you could be earning the same as someone who is earning minimum wage who works 16 hours, but you could be working 14 hours, which makes you not eligible for working tax credits if you see what I mean. When there's cash at steak they are hardly going to take someone's word as gospel.

chantry5 · 11/01/2015 11:24

Hi Ladysybil, I do see what you mean and I do earn above the minimum wage at just over £7 per hour. So yes, in all these years they've never asked for proof of hours worked so I can see why they would want to check. It's a bit unnerving having all my documents sent back with just a letter saying they're going to write to me afterwards. Why not send it all on one go rather than make me worry for longer :D

LadySybilLikesSloeGin · 11/01/2015 11:51

That would make too much sense Wink

They have only recently started to implement the tougher rules regarding self employment income matching minimum wage etc, so I imagine this is yet another way for Big Brother to make sure people are doing what they claim to be.

chantry5 · 11/01/2015 12:26

Well my mind is slightly at rest for now! Thanks for your input! Smile

LadySybilLikesSloeGin · 11/01/2015 14:41

You're very welcome Smile

TheFriar · 11/01/2015 16:30

nerf it's all well and good to always want to increase your customer base but 1- it doesn't always happen (just see the number if businesses that go down within 5 years)
and 2- if the OP is picking up the dcs from school etc she might well not be able to increase said hours ....

I wouldn't be so judgemental if I was you.

MummyToEllieAndLucy · 11/01/2015 20:22

Hoya ive recently received a letter from concentrix working on behalf of hmrc asking for me to send in payslips and contracts so they can check we are still working the hours our claim is for (which we are) for April 14 to nov 14 so i do just think its random selection. I looked up the company and they only took over investigating in. November 14 so im thinking maybe they are just going through checking claims from April as that was the start of tax year? I started my maternity in may so thought it may be to do with that, but i don't see why they would only need documents til nov if that was the case, in just going to send what i can in. Wouldn't worry too much ??

Loletta · 11/01/2015 22:12

This reply has been deleted

Message withdrawn at poster's request.

Nerf · 11/01/2015 22:41

Judgemental? So you ignored the actual advice then and focussed on the comments. If the jobs aren't related they should be separated rather than all the income lumped together and no expenses or proper records of expenses kept.

LadySybilLikesSloeGin · 11/01/2015 22:44

Nerf has a point. It's one of those things that you have to do properly.

Singleandproud · 11/01/2015 22:52

If you don't issue receipts why not go through your appointment book and get a simple carbon copy receipt book and write them out now? It would take some time but then you would have your written record.

threeofus · 12/01/2015 22:28

Hi All, I got a letter from concentrix also... asking to confirm my hours and send in payslips from April to december. Are they changing the way they work out the tax credits amount? because they have always asked for my previous years income, so why are they now asking for the current tax years income... because if they now want to base it on this tax year, I am earning more than last year and they will be overpaying me. I have always pointed this out to them, and they have said its fine as it all wworks out the following year.... what do you think?

halima87 · 12/01/2015 23:12

Hi, i received a letter too asking just for employment details for me and hubby from 06/04 to end of dec confirming any periods of sick pay or unpaid leave by employer. I'm employed and so was hubby until November when he became self employed so not much to show since he started. Surely they get details of employed peoples earnings from their NI and tax contributions?

LadySybilLikesSloeGin · 12/01/2015 23:17

Don't make the mistake of thinking that one hand knows what the other's doing, because they don't have a clue! You're better off sending them exactly what they ask for.

They ask for the current year's income too incase it's higher than last year's so they don't overpay you.

threeofus · 12/01/2015 23:27

THANKS... i just found some info... they ask for previous year and cuurent years income, so, if income rises, they can adjust, and they disregard a £5000 increase but take anything over that into account.... i think thats right!

maparole · 15/01/2015 14:10

I have started a petition on this issue. Please sign and share

you.38degrees.org.uk/petitions/stop-attacking-small-businesses

lougle · 15/01/2015 14:52

That petition is inaccurate. It is not just small businesses who get randomly checked. People in PAYE employment also go through 'compliance' randomly.

People don't need to be able to 'prove' the things listed. They are being asked to supply records to show that work is being done. It isn't hard to keep a record of bookings made, fees charged, supplies bought, etc.

AmyFrost89 · 15/01/2015 18:49

I have received one of these letters too asking for info about hours worked by me and my partner from April to December 2014. None of our circumstances have changed at all were still in the same jobs same hours worked and same pay. Are they sending these out at random or to people they believe have changed the hours they've worked without letting them know? So confused Confused

chantry5 · 16/01/2015 07:46

Hi Amy, If you have a look further up where Ladysybil replied to my first post she points out why they may be thinking they're paying wrongly. It does make sense. I'm still waiting for my letter back so can't add much more than that at the moment. I'm not as worried as I was though, after finding this thread ! Seems they're checking many people...which is a good thing considering i've never had to show that I work 16 hours before now and that's been over 5 years. All they've ever wanted is a p60 figure. Again, makes sense to check.

Chaseface · 16/01/2015 08:01

This reply has been deleted

Message withdrawn at poster's request.

Ashleigh8 · 17/01/2015 17:46

Hi,

Can anyone provide me with the address to send the relevenat information to them please?? X

Ashleigh8 · 17/01/2015 17:47

Hi,

Can anyone provide me with the address to send the relevant information to them please??? X

Hunnybunn · 18/01/2015 20:11

Isn't it at the top right hand side of the letter? I think it's a po box number? I wanted to know what the right address is as well! Super worried got my letter last week, can't believe I'm going to send my job contract through the post to some random company! What if it gets lost in the post? They haven't even provided me with a addressed envelope, should I send it recorded delivery?

chantry5 · 19/01/2015 16:22

I didn't bother, I sent mine normal first class to the address on the letter. They sent it all back within the week and I had my letter today saying they do not need to alter my claim. Thank god.