I have a friend of the family who is trying to make a working tax credit claim. She has been refused on the grounds she does not work 30 hours. However, when taking into account travel time so does go over the 30 hour limit. On calling the tax credit helpline she has been refused again. I've had many instances with these people of giving inaccurate and plain wrong information - so I'm not prepared to let it lie.
All I can find about remunerative work is this. Do you think travel hours could come under "Those spent in activities necessary to the employment"?
http://www.hmrc.gov.uk/manuals/ntcmanual/eligibility_remuneration/ntc0340200.htm
Any ideas?
Replies (4)
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I would include it
The guidance says for example trips to wholesalers. Would they honestly say that meant only the time IN the wholesaler and not time to and fro?
I would say if the travel expenses qualify for tax relief against income then the travel time is surely "necessary". If however the client's base is elsewhere and you are counting time travelling to and from that base then I would not think that was to be included.
I have seen a case where marketing time was disallowed. I don't think the staff really understand that much about how self-employed businesses work.
(not least as they use the word "employment" in discussing self employment!)
always claim 30 hours
They don't understand how self employment works and how could they check? - any time spent 'promoting/enhancing/thinking/reseraching.. and even 'working' for your business is legitimate.
Admin hours
Don't forget the number of hours a self-employed person can spend dealing with paperwork. billings, credit control etc.
It's not the actual job as such but does count towards the 30 hour limit.
Are you sure she has not miscounted?
Very few self employed businesses take less than 30 hours a week to run when you consider everything - admin, book-keeping, marketing & development, research, networking, maintaining equipment etc etc.
She may like to try adding it up again?