Working Tax Credit (UK)

Jake33
Level 2
Rhynie, United Kingdom

Working Tax Credit (UK)

How do I get financial advice? I got ,£4,000 over the last few years from HMRC Working Tax Credit. Now they say that my claim had been false because my main income, renting out a treehouse through airbnb, isn't "commercial and profitable self-employed work", and they want the money back. The citizens advice  say they're out of their depth and can't help me............. any airbnb hosts had a similar problem?

3 Replies 3
Helen3
Top Contributor
Bristol, United Kingdom

Sorry @Jake33  I can't offer financial advice, but  the government are correct - you can't claim working tax credits if your main source of income is from property. Working tax credits is a form of support available to those who are either self employed or employed.

 

Generating income from property is neither -  so I am confused as to why you would have applied for working tax credits if you have no form of self employment.

 

If this is the case I would speak to them and see if you can make a staged plan to repay the money you claimed incorrectly. @Jake33 

Mike-And-Jane0
Top Contributor
England, United Kingdom

@Helen3 I know nothing about working tax credit BUT I do know that Furnished Holiday Let income is different to property rental income. FHL income is classed as earnings.

@Jake33 Have you been operating a Furnished Holiday Let? You'll need to check the rules for a FHL on gov.uk

Going to a 'tribunal' in Inverness tomorrow (Tues) to appeal. The tax people have a 10page stated case, full of red herrings about whether a treehouse rented out through airbnb is a proper business or not. One of the phrases is that it's not "organised and regular"... Seems like an attack on anybody who does any business that's seasonal.

More tools to help you meet your goals

Resource Center

Explore guides for hospitality, managing your listing, and growing your business.