This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Claimant Compliance Manual

Particular aspects: work & hours - self-employed customers - opening letters

Although there is no obligation for the customer to keep records for tax credit purposes, you can request documents and records that we would expect customers to keep to run their business. This information would be needed to be able to complete their SA return.

In the opening letter you need to ask for evidence to help you make a decision on remunerative work and hours.

Some of the information sources you make find useful are

  • diaries, which you could expect to detail work appointments, business travel, phone calls or meetings to discuss possible outlets for the goods etc
  • summaries of orders or payments received for products
  • summaries of orders or payments for raw products
  • copies of advertisements
  • copies of estimates for work
  • lists of customers’ names and addresses
  • correspondence with literary or other agents
  • invoices for work completed
  • bank statements

Note: For advertising it would be beneficial to ask for previous week adverts as it is easy to place an advert to provide the evidence you have asked for

Note: if someone is genuinely self employed then it is likely that they will be reluctant to hand over diaries etc as this will interfere in the day to day running of their business. If a customer responds in this way it may either be a positive indication or an indication that the customer doesn’t have any documents and is not engaged in remunerative work. If this is the case, it may be appropriate to accept copies. However, as the condition of the diaries could be telling, as to when the book has been used for example, daily or completed all at once for our benefit it is important to use originals whenever possible