In this day and age it is very difficult for you to say something
in the public domain without it being checked, dissected, and generally exposed
to full public examination.
So one
wonders how Michelle Dorrell, a mother-of-four, who shouted "
shame on you" on BBC Question time as
she confronted Amber Rudd, the Energy Secretary, over the welfare reforms and
accused the government of taking the money she had worked "
bloody hard for",
feels this weekend.
For a start, taking her “evidence” for her own predicament, she
was wrong according to the Institute for Fiscal Studies which suggested that,
because Ms Dorrell does not make a profit, she is unlikely to be hit by changes
to the income threshold for working tax credits, which is being almost halved
to £3,850 a year. Point one.
Point two. She will
also not be affected by the changes to child tax credits, which will only be
restricted to the first two children for new parents from April 2017. David Phillips, a senior research economist at
the IFS, said: "On what she has told
us she wouldn't be affected by the cuts to the child tax credits or the change
to the taper rate because she is not above the threshold. Even the family element thing comes in 2017,
and will only apply to new claimants.”
Point three is where it comes more difficult for Ms
Dorrell. Accountants said that she may
face scrutiny from HMRC over her business under a new test for self-employed
benefit claimants.
The test requires that in order for people to claim tax
credits work must be carried out on a "commercial basis" with a
"view to a profit". Ms
Dorrell said that her business makes a maximum of £150 week, all of which is
put back into new products and advertising. The business has a website but is not
advertised at her property. Robin
Williamson, an accountant at the Low Income Tax Reform Group, said: "If she receives no income from her business
it is always possible that HMRC may investigate to see if this test is
satisfied."
So apart from her claims being found somewhat tenuous in relation
to money getting cut, she could end up being on the wrong side of an HMRC
enquiry into her business. Not a
position anyone really wants to be in. So my advice today is, if you are going
public, and that includes saying anything on social media, get the facts right and
don’t open the door for people to enquire more about your circumstances. You might just regret it.