Self employed for Tax Credits

Currently, there are 0 users and 1 guest visiting this topic.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • #19975
    Trevor Kenward
    Participant

    I would be interested in what are my options in this claim.
    I have a chap who for at least the last 2 years has ‘traded’ as an escort and mobile masseur. His turnover for the last 6 months was £45 in total. He claims he does 30 hours per week.
    On questioning him he has stated that he does not advertise/belong to any trade organisation/has no transport/that business unlikely to improve and that he is not making any attempts to find new business.
    He is arguing that he spends a lot of time on personal grooming and on waiting for phone calls for work from previous customers.
    He receives Tax credits on basis of working 30 hours pw and appears quite happy for the present situation to continue.
    Whereas I am, after considering the points highlighed in the IR guide as to whether someone is in gainful self-employment, of the opinion that he is not gainfully self-employed what if anything can I do regarding the Tax Credit situation?

    #1696
    Kevin D
    Participant

    [quote:d5b3f6a920]I have a chap who for at least the last 2 years has ‘traded’ as an escort and mobile masseur. His turnover for the last 6 months was £45 in total. He claims he does 30 hours per week. [/quote:d5b3f6a920]

    30 hours per WEEK and only £45 in [u:d5b3f6a920]6 months[/u:d5b3f6a920] as his GROSS income (i.e. turnover)? I don’t think so. There are only two possible conclusions:

    1) His earnings are massively above what he is disclosing; or

    2) He isn’t, in reality, working and is keen to keep the 30 hours in place for benefit purposes.

    Actually, there is a “third way”. He is the cheapest escort of all time.

    In my view, his account is simply not credible.

    So, what can the LA do? In my view, the following options are available (in no particular order):

    1) adverse inference on earnings;

    2) inference on hours (i.e. he is working less than 30 hours);

    3) inference that he is not working.

    4) [deleted this line].

    As the clmt has himself already stated he is not seeking new business, it strikes me that simply waiting for phone calls is not being “gainfully employed”. It strikes me that is no different to an unemployed clmt awaiting phone calls from potential employers while at the same time taking no steps to obtain employment.

    For what it’s worth, there is a CD that suggests HMRC’s view of the clmt’s employment status is not necessarily binding for benefit purposes – see [b:d5b3f6a920]R(FC) 02/92 (CFC/0015/1990)[/b:d5b3f6a920].

    As for the Tax Credits situation, the only thing you can do is write to them. But, other posts on this board give the impression that HMRC are not actually that bothered about such matters. Unfortunately, that is also my experience with HMRC. Different matter is you’re earning and have a modest increase – then HMRC seem to be happy to make lives a misery.

    Hope the above helps.

    #1697
    Trevor Kenward
    Participant

    Thanks Kevin, exactly my thoughts,
    Im going for option

    ‘2) He isn’t, in reality, working and is keen to keep the 30 hours in place for benefit purposes.’

    Unfortunately doesnt affect his HB entitlement and the HMRC as you state dont seem interested so you wonder sometimes why you bother 😈

Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.