New Eligibility for Working Tax Credit

HMRC is contacting some self-employed recipients of Working Tax Credit whose average hourly profit is less than the National Minimum Wage, which is currently £6.70 per hour and will rise to £7.20 in April with the introduction of the new National Living Wage for 25 year olds and over.

The contact is along the following lines:

Your self-employment now needs to be:

done on a commercial basis, with a view to making a profit done regularly and in an organised way

You may not qualify if you do not:

make, or plan to make, a profit have good business records work regularly follow regulations for your trade or profession

Requested information may include:

records of earnings and hours worked invoices for the work you have done receipts for expenses summaries of orders or payments received a business plan how the activity is organised and promoted