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.