Tax Credits

[Solidec]

I think McSnotty has trppled the size of the Big Book of Tax since becoming Chancellor in 1997! Ofcourse, he has had to triple the number of public sector good for nothings to make sense of all the waffle thats been added, at taxpayers expense! weeeeeeeeeeeeeeeeeeeeeeeeeeeeee! plop.

[DaveP]

Just sent my application form of for tax credits,
I am a contractor and happy with it, paying myself via ltd company basic wage + dividends.

I am single & no kids, apparently you can still apply for tax credits.

Nothing ventured nothing gained !!!!

[MPwannadecentincome]

Do you know if a second property complicates the savings aspect of above and, if so, what do you high-flyers do to keep your 2nd/3rd/4th etc pads out of the spotlight???

Cheers,

Webkey.

Any income that goes on your tax return is basically the same as what is declared on the child tax credit claim form - from what I remember.

Thus 2nd property income (profits) would be included.

Sorry I'm not one of those high-flyers so can't comment on keeping the other pads out of the spotlight - I don't have any other pads!

[MPwannadecentincome]

Personally speaking I think the whole tax system in this country is a joke, far too complex, inefficient and bureaucratic.

I quite agree - simplify the tax system and close the loopholes and the treasury will probably pull in more revenue.

Whoops I better be careful what I say here - if the tax system is simplified too much there won't be any benefit left for contractors!

[SteveCo]

When your nipper goes to nursery or needs recognised registered Childcare you will be able to use Childcare Vouchers via someone like Accor or there are a few others.
You could even run it all yourself via your ltd co.

This can save you personal and company tax and you can claim up to £243 per month.

[ASB]

I happen to think that the threshold is too high.

Yep, apparently 90% of households receive tax credits. So for the vast majority they are taking away your money and broadly giving it back. Perhaps it could be a little better focussed.

Anyway, the OP, if he/she wants to get a bit creative could look up how the £25,000 income disregard works. I suddenly discovered I'd made a tidy sum in tax credits by mistake as a result of this - but I wasn't giving it back.

Hint: taxable income of loads in one year and nil the next, repeat and rinse maximises the tax credit is you are so inclined (yes it is abuse but I didn't make the rules )

[stphnstevey]

Yep, apparently 90% of households receive tax credits. So for the vast majority they are taking away your money and broadly giving it back. Perhaps it could be a little better focussed.

Anyway, the OP, if he/she wants to get a bit creative could look up how the £25,000 income disregard works. I suddenly discovered I'd made a tidy sum in tax credits by mistake as a result of this - but I wasn't giving it back.

Hint: taxable income of loads in one year and nil the next, repeat and rinse maximises the tax credit is you are so inclined (yes it is abuse but I didn't make the rules )

Would you not have to pay back the overpayment eventually?