Working hours for Tax Credit claim

[laneypants]

Morning all!

I am self employed working both mobile and at home and wonder how anyone in a similar position calclates their working hours for tax credit claims, or even if you know if there is a particular way When I was first self employed HMRC just asked me to make a rough estimate.

Do you use your advertised opening hours, hours you pay for childcare, or just an average of previous weeks? Obviously as self employed, not all of your working hours is spent making money; paperwork, banking, cleaning etc..geeking:lol:

Anyway, any thoughts on this would be appreciated.

 

[alsbeautyinabox]

Hi if you take a look on the insland revenue website their is a section in working tax credits for self employed people.
There is a list of things you can include that are classed as working hours such as;
Purchasing stock
Promoting your business
Cleaning your car if for work purpose
And a few other stuff!

 

[Baggybear]

They don't need to know exactly how many hours your working, just a rough idea so they can award you the correct money.

For example they want to know if your working 16 hours (part time) or 30 hours (full time). It is ok if one week you work 25 hours and then another week you work 40 hours as it all evens out, they just don't want to pay you for working full time if your only working part time hours.

I count: my bookeeping, actual time doing treatments, all phone, text and email enquires that need answering or reading and replying to, driving to & from clients, talking to people about my work/busines, time shopping for products and equipment (even if it is online), advertising (creating/updating website, keeping facebook/twitter up to date, handing out flyers/business cards, designing busines posters/cards/vouchers,) washing & drying towels & uniform, Keeping a portfolio in order (sorting through photo's of work I've done and printing out those I want to show off), cleaning my car, time doing my own toes/fingers/tan (as it's advertising), stock checking my products, packing my kit for appointments, research (new products, new treatments, where is best place to buy each product from, competition in the area, ect.) also filling out forms and phonecalls I need to make (like for rent benefit, NI exemption, ringing DWP, ringing HMRC, ect..) as working hours.

 

[laneypants]

Thank you both for your replies, I did reply earlier but that seems to have disappeared into cyberspace...

Think I'll have another look at my hours now as I think I should be claiming more along the lines of 30 hours not 16-20!

Thanks again xx

 

[Baggybear]

If your doing everything you can to get your business off the ground you will be working 30 hours a week easily. As I said it is possible that some weeks will be quieter but then you get the mental weeks where you don't have time to wee let alone sit down and chill so it will work itself out over the year.

Nobody will question your hours or ask for a breakdown of how you spend those 30 hours. So long as you know you are working approx 30 hours a week then that is fine.

 

[topcuts]

am i still entitled to claim this working tax credit as i stopped when i opened a salon but im still self employed and as yet not paying a salary?

 

[Baggybear]

I would say you should apply as the worst that can happen is they say your not entitled, not a big deal if they say no but if you are entitled then it's extra money to get by on.

Your personal circumstances will have a lot to do with if you are entitled or not. Check out the link to see if you do qualify and approx how much you would get if you do qualify.

HM Revenue & Customs: Tax credits calculator - find out how much you can get

 

[laneypants]

I've been self employed for several years now but was just tanning in the evenings around my daughter and a part time job. I kick started everything last January when my son was 6months old, waxing, intimate waxing tanning and lashes. I didn't expect things to take off as quickly as they did and just haven't got round to updating these sorts of things. I think if I totalled the hours spent on activities such as you have mentioned it will be well above 30. Especially if I include time spent on salongeek (it's research!!) it's like you say as long as I know it's right - I really wouldn't sleep at night if I thought I was making a false claim! Thanks for your help.

Topcuts, when I first started up my home salon last Jan I had to tell IR I was working 16 hours in order to get WTC towards childcare, otherwise I couldn't afford the nursery fees and so couldnt have worked so it is well worth putting the claim in. Good luck.

 

[topcuts]

I am entitled it has been verified woohoo and a nice amount too for the last tax year. I claimed previously but thought I wouldnt be entitled this year so opted out, silly girl haha. I wont believe it til I see it in my bank though......

 

[laneypants]

Great news! I know there are some massive problems with the whole tax credit and benefits system but it really pulled me out of a hole when I became a single mum and again with nursery fees now. Always good to ask eh