HMRC Tax Credits self employed - being assessed

pure

Super Moderator
Staff member
#1
Has anyone else had the new assessment from HMRC to see if your business is viable?

I had a letter and forms through today informing me I basically have to prove my business' worth or I lose my tax credits. As a single parent this has terrified me.....and the information they want is mad. My diary, record cards, no photocopies only originals! How does that work with data protection for a start?!
 

ciderella71

Well-Known Member
#2

PamieD

learnelectrolysis.co.uk
#3
Has anyone else had the new assessment from HMRC to see if your business is viable?

I had a letter and forms through today informing me I basically have to prove my business' worth or I lose my tax credits. As a single parent this has terrified me.....and the information they want is mad. My diary, record cards, no photocopies only originals! How does that work with data protection for a start?!
Have you rung up your pro body to let them know? That's pretty outrageous to want your original client record cards.
 

CFBS

Well-Known Member
#4
Perhaps they would be satisfied with showing your sale receipts which show client names? They could then match this to your appointment book to verify your turnover.

Just a thought ...
 

blossom

Well-Known Member
#5
I don't get tax credits but do get child benefit, will that affect me do you think? X
 

pure

Super Moderator
Staff member
#6
The form actually states that they require a list of customers and evidence of work done. Now this applies to any industry however in ours it can be particularly personal in its nature. I've looked up the data protection act details and one of the exemptions are -

Crime and taxation.
(1)Personal data processed for any of the following purposes—

(a)the prevention or detection of crime,

(b)the apprehension or prosecution of offenders, or

(c)the assessment or collection of any tax or duty or of any imposition of a similar nature,

are exempt from the first data protection principle (except to the extent to which it requires compliance with the conditions in Schedules 2 and 3) and section 7 in any case to the extent to which the application of those provisions to the data would be likely to prejudice any of the matters mentioned in this subsection.


So basically the government is well within its legal rights to see this information. o_O

Blossom - this is solely concerned with Working Tax Credits, child benefit is not affected.
 

Baggybear

Well-Known Member
#7
I went through this process just before Christmas, I did not send them ANY private info, no diary, no client data etc..
I will Pm you with more info but you don't need to send them much. I sent a business card, a price list & a tanning leaflet, a bill showing I had bought something for the business, a copy of my insurance & a bank statement showing JUST client payments (adding all other payments are made in cash).
It is frightemning at first but try and stay calm when looking to answer their questions one at a time.
 

surf girl

Well-Known Member
#8
How do I link this post onto another post?
 

pure

Super Moderator
Staff member
#9

surf girl

Well-Known Member
#10
What post do you want it linked to?
The 4 times a year tax return one I made, this info will be helpful for those commenting on there :)
 

#11
I don't know baggy bears situation but I didn't not get away with sending so little. They were awful and I was in tears. They stopped our tax credits for almost two months it was so hard on us.
They refused to accept my business (of8years) and I had to appeal.
I was so angry because they didn't accept my business but the other department still expected my tax return!!!
I had to send all my appointments, client info. I had to ask all my clients if I could send this off and lead me to tell them all my info. I'm open so it didn't bother me.
I had to send every single qualification to prove ongoing education to try and grow my business, all my accounts, my business plan, advertisements, client reccomend actions,Facebook page info all sorts.
I then began to call them every few days to check they had everything g, see where they were with it and basically let them know I was not going to drop this. How dare they say my business wasn't viable!
I won and we now get our tax credits but it was so stressful
 

surf girl

Well-Known Member
#12
I'm actually crapping myself about this after reading this lot!

How do you manage without your appointment books while they have them?
 

#13
I don't get tax credits but do get child benefit, will that affect me do you think? X
Everybody gets child benefit. It is no means tested.
 

#14
I book through online booking and on my phone so I didn't send them it I just printed my appointments off.
Just send everything they have asked for. If you need help feel free to pm me.
Do you work mobile or in a salon
 

sarahpoppy24

Well-Known Member
#15
Tax credits etc are being abolished soon. There is a new one coming in called universal credit. Think I posed this on the other thread but if you google "universal credit" it will have all the new rules. I expect all these new rules with self employment is in preparations for this change. I think I posted this on the other thread about the 4 times a year self employment, but posted it here incase it helps anyone xx
 

Baggybear

Well-Known Member
#16
I don't know baggy bears situation but I didn't not get away with sending so little. They were awful and I was in tears. They stopped our tax credits for almost two months it was so hard on us.
They refused to accept my business (of8years) and I had to appeal.
I was so angry because they didn't accept my business but the other department still expected my tax return!!!
I had to send all my appointments, client info. I had to ask all my clients if I could send this off and lead me to tell them all my info. I'm open so it didn't bother me.
I had to send every single qualification to prove ongoing education to try and grow my business, all my accounts, my business plan, advertisements, client reccomend actions,Facebook page info all sorts.
I then began to call them every few days to check they had everything g, see where they were with it and basically let them know I was not going to drop this. How dare they say my business wasn't viable!
I won and we now get our tax credits but it was so stressful
I have heard of others who had their money stopped too, I just tried to answer each question in full but just giving them the information they have asked for, it is possible I didn't need to send too much proof because I gave them enough info on the form. The whole thing is VERY stressfull and upsetting (& I had this over Christmas & new year so not the best timing with 4 kids either) and it wasn't easy but is proof that it can be done without sending too much private/client information.
I think they have gone about checking everyones compliance the wrong way, they dodn't need to stress people so much, all this and I am STILL on Tax Credits and have not been moved to the new Universal Credit so it has nothing to do with it being abolished and bringing in the new Universal Credit because they could have just moved people from the one benefit to the other without making it such a long winded and frightening process, I still have the move from Tax Credits to Universal Credits to look forward to (no doubt that will be a nightmare inducing experience too).
 
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ciderella71

Well-Known Member
#17
I've just received a request for all the formation this morning
 

pure

Super Moderator
Staff member
#18
I've just received a request for all the formation this morning
It makes you feel sick doesn't it :( I'm still working my through my form but if you want to pm me please feel free X
 

Baggybear

Well-Known Member
#19
It is a horrible thing to go through. Feel fre to PM me, can't say my help or advice will ensure a smooth time but I can tell you what I did.
 

pure

Super Moderator
Staff member
#20
can't say my help or advice will ensure a smooth time but I can tell you what I did.
It made me breathe and sleep a little better! :)
 
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