A single person that works 30 hours or more qualifies for Working Tax Credits - but what actually qualifies as working hours for a self-employed person? Does admin count in those hours?
Now obviously if I was working 30 chargeable hours then I would be over the £13,000 limit anyway. But I reckon I will be around 21-22 hours a week chargeable at the moment. This will hopefully be increasing next year.
I can't get much guidance online because it usually refers to employed people and not self-employed. Does non-chargeable work count in those (30) hours? I must work the same amount (if not more) on non-chargeable as chargeable. My own admin as well the hours I spend online reading HMRC pages.
Would I be able to say I worked 30 hours? What proof do they seek for those hours?
__________________
Never buy black socks from a normal shop. They shaft you every time.
I told them the hours I work in total - chargeable and non chargeable - I'm working "on the business" when I'm not dealing with clients work. I did say it could vary but they just wanted an average - so I suppose as long as it fits into one of their brackets thats all that counts. I have not been asked to prove it at all. I can't see why you couldn't say you worked 30 hours especially when you account for non-chargeable time too.
I've had clients (directors of owner managed companies) taking very low salaries (and no dividends) who have been requested to supply them with their contract of employment to prove that they are contracted to provide x number of hours service for y return each week / month (of course for directors minimum wage legislation is not applicable).
Thats fine for salaried directors where a contract of employment is in place but not sure how the self employed would handle this where unlike with limited companies there is generally no contract of employment.
Personal opinion is that I think that tax credits are geared against the self employed.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I've never had a problem with this, but then I am married and with kids, so our joint hours worked need to be over 24 (my husbands works over that by himself). Our only problem now is that my husbands company car has been way over valued and, as we have to add the value to his income, it takes us over the earnings threshold. They valued it at over £10,000 - I'd rather have had the money lol.
