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You can find out more about the qualifying remunerative work requirement in our entitlement section.
(You can find the national minimum wage rates in our national minimum wage section).If they are not earning that amount, then HMRC may ask the claimant to provide evidence that they meet the requirements of the new test.The evidence asked for may include things such as business plans and other business records, including any relevant insurance documents (see HMRC’s Helpcard – note that this helpcard has not been updated in recent years but it can still prove a helpful guide.) It is expected that not everyone whose earnings fall below the threshold will necessarily be asked to prove their self-employment is commercial with a view to realising a profit and is organised and regular.HMRC are developing their guidance on this subject and we will provide more information as it becomes available.
It is not yet clear how this test will be applied in joint claims, where there is a joint hours requirement nor whether there are tax implications where HMRC determine that the self-employment is not commercial for tax credit purposes.HMRC issued a briefing in March 2015 about how they will apply the new rules.