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HMRC internal manual

Tax Credits Manual

Eligibility - remunerative work (general): Work for, or in expectation of, payment (Info)

The work a person does must be for, or in expectation of, payment.

Work for payment

The payment made must be in return for work done. The work will be as an employed or a self-employed earner. Work that is done on a therapeutic basis can also be work done in return for payment.

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Work done in expectation of payment

Work done in expectation of payment means more than a mere hope that payment will be made at a future date. There should be a probability, rather than just a possibility, that a payment will be made.

If a person expects payments for work done, but the customer or employer doesn’t pay, then the condition is still satisfied. If the person knows before starting the work that payment was unlikely to be made, the remunerative work condition isn’t satisfied.

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Work for no monetary reward

If the only payment made is in kind (for example, groceries for a person who works as a shop assistant or free accommodation and farm produce for a farm labourer) the work is for payment.

Alternatively, if no payment in cash or in kind is made and the only payment for the work is earnings calculated notionally, the work can’t be treated as work done in expectation of payment.