I have been told that I should be entitled to tax credits, but I am self-employed. How will this work as my income fluctuates year to year? Will I have to pay anything back if my profits increase next year?
If you work more than 30 hours a week and are over 25 years old (and have no children) you could be entitled to working tax credits if you income is less than £6,420 per annum. Over this level the tax credits will be reduced by 41p in every pound you earn from April 2011. As you are self-employed and your earnings fluctuate, HMRC effectively ignore increases in your profits of up to £10,000 over the previous year. Please note however that different rules apply to claimants with children, the disabled and the over 50’s and further information can be found on the HMRC website.
I have received an e-mail from the Inland Revenue telling me that I am due a repayment of tax which I didn’t know about. Why has this repayment occurred as I’m only a pensioner with a basic state pension and a modest private pension.
I very much suspect that this is a scam e-mail, as HMRC have a policy of only contacting customers, who are due a repayment, by post. There have been many instances where people of clicked on links and ask for account details, only to find money being taken from them. HMRC have requested that if you receive any of these types of ‘phishing’ e-mails that they be forwarded to firstname.lastname@example.org and deleted immediately.
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