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Working Tax Credits - Self Employed and Director Issue!

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    #11
    Ahhh, I think I see now.

    You personally performed work for a limited company that you also happen to be a director of in a self employed capacity.
    You then invoiced the company for your self employed work and the company paid you.

    Is that correct?

    If so, then yes, 100% of the value of these invoices is your own personal income for the tax credit form.


    It seems a very strange way to do things though....
    Still Invoicing

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      #12
      It is a strange way of doing things (I realise now) but at the time, it was because a proportion of my work was for clients that i wanted to serve (in my self employed capacity) instead of with my limited company. I was confused about what and how i could do things because i was basically naive really.

      So... with my compliance check, they looked over my self assessment, checked my declared personal income, then queried about me invoicing my own company (even the tax inspector seemed confused) whether as a director that income should have counted as 'wages' which should have required me to be registered through paye... but then of course id have been liable for minimum wage... (though directors can work outwith that within their capacity as an office bearer...)

      You can see how it gets confusing because of the way I did it. Im still awaiting for the summary from my compliance check...

      Im not really sure what to expect, but on the up side they could see my income numbers added up right, but unfortunately the manner of my reportage may be incorrect.

      What I cant imagine is them retrospectively deciding i should have been on paye minimum wage (for my own company?!) doing short term commissions i did for it as a self employed person? Ugh it gets confusing - any experts here able to dis-entangle this consfusing web?

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