HMRC Childcare - tax issue?

[RosaRoll]

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

HE is not CIS
the company is CIS
he has no earnings, only investment income
so is not "in work" for the purposes of the childcare

why has your accountants not advised him to take an £8500 wage ?
he's missing a trick

He has advised him to take that wage but HMRC advise that say that there isnt enough proof of income despite bank statements shown. As he is CIS and completes a tax return he doesn't receive a wage from his own ltd company so no wage slips. He takes X amount each month.
I'm wondering if he has to display something from his own company showing that money going to him as wages but surely that wouldn't work for HMRC as he isn't PAYE and would be simply be drawing this up on the back of this issue.

The accountant advised not going paye but that doesn't help us with HMRC. Swings n roundabouts possibly.

SO is he a self employed CIS subbie of his own company - which is also CIS ?
why?
Remember that the Company income is not his income
they are entirely different legal entities

the only income that will count is stuff that goes through his NI number

basically you are out of pocket this year
and then need to go PAYE ASAP

and probably change accountants to one who takes a more holistic view of the various taxes

SO is he a self employed CIS subbie of his own company - yes. But i need to check if ltd is CIS too. I doubt it as he'd be deducted twice i believe.
Im assuming his employment position is ok in practice.

I'll check re income via NI. I think X amount includes dividends et al as company easily makes a profit as very little outgoings.

Why on EARTH has he bothered with the cost of a Ltd Co and then gone CIS within it ?
Your accountant is weird.

If he is CIS the company HAS to be (to be deducting his CIS) so it might have a gross certificate
but it all sounds a bit barking that he is paying 9% class 4 when he does not have to.