Important information about changes to Working Tax Credit

The rules for claiming Working Tax Credit have changed for self-employed people. This letter explains how this may affect you.

Eligibility 

To be eligible for Working Tax Credit you should be getting paid, or expect to get paid, for the self-employed work you do in your trade, profession or vocation.

Your self-employment now also needs to be:

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

For example, you may not qualify if you don’t:

  • make a profit, or plan to make a profit
  • have good business records
  • work regularly
  • follow any regulations for your trade, profession or vocation, for example by not having the right insurance if you’re a driver

 

If we need to check your claim

We may ask you for more information so we can check if you are eligible for Working Tax Credit under these new rules.

The types of information we may ask for include:

  • records of your earnings and hours worked
  • invoices for the work you’ve done
  • receipts for expenses you’ve paid
  • summaries of orders or payments received for products
  • a business plan and how this was put into place, for more information on business plans, go to www.gov.uk/write-business-plan
  • how the activity is organised, for example how the trade, profession or vocation is promoted; how it runs on a day to day basis.