Tax credits

[Sparklepants]

Sorry if this is in the wrong place.

DH is self employed and I need to renew the tax credits. I can't remember what figure I need to give to them is it what he earned before tax? Only started getting them last year so I want to get it right.

Yes it's the amount on the self assessment tax return, so pre tax profit.

Just a word of warning, DP is also self employed and we've just had a letter through with all the 'evidence' we need to provide and it's ludicrous. Hopefully you won't get one too but I'd be prepared just in case.

They are clamping down on all self employed people and doing compliance checks to make sure businesses are viable and making profit.

Yeah we had to do the check thing. Dh doesn't earn loads so they warned us if business doesn't pick up they could stop our tax credits.

Evidence? What evidence? We have an accountant and he sorts all the tax return and tells us the figure. I didn't know which figure it was and didn't want to bother him yesterday as he wasn't in his office.

Things on our form are things like
the exact hours worked and with whom on what day, for the last 4 months,

any materials supplied and to whom for the last 4 months,

why you chose that line of work,

how do you advertise and how have you advertised in the past,

bank statements,

cis payslips,

list of suppliers,

prices you've paid for goods,

appointment books,

trade qualifications, etc.

If the business is making profit and established then they don't always do the checks.