[Chrysalis]

BY the way I do accept your argument for self employed and business owners, tax credits is simple on PAYE but complex on self employed. The benefit system has the same issue as well, claiming any income related benefits when self employed has issues. But from what I understand proposed changes such as universal credit wont fix those complications, the issue been when people have a variable income thats hard to predict and keep steady over a long period of time.

The only 3 reasonable ways I can see this been dealt with is.

1 - person submits estimaed earnings start of tax year and gets annual reward based on that estimate, at end of year however person may owe money back to hrmc/dwp if overpaid or other way round if under paid. Current system for tax credits works this way? but not for benefits such as housing benefit which are far messier than tax credits.
2 - person submits earnings at end of financial year and as such gets reward in arrears at end of year but the reward is accurate as is actual earnings, this should reduce mistakes fraud etc. but person has to live without help for a year.
3- similiar to #2 but done more regular like monthly, to simplify it the figures can be submitted without proof monthly over the internet or phone, to ensure continuity, but annually at end of each year proof has to be sent to qualify continued entitlement.