Does your salary/divedend split affect your financial "power"?

[Sysman]

Slightly different question: I am now on an IR35 friendly contract (as opposed to being inside for most of last year) when it comes to filling in the child tax credit form later this year do I put my salary as £7500 or my annual turnover? Surely I will be on their rader when they notice a £60,000 drop in salary from last year?

Blame globalization for your pay cut.

[Signo_cypher]

I sure did!!

Do you mean last year you paid IR35??

Yes, the contract was well caught and agency wouldn’t budge. I needed a foot in the door so took the gig. That was was my first contact role. 12 months on I had a years experience and a tidy amount saved. I learnt a lot in that time. Thanks to this forum infact

Do many people on here go from outside IR35 to inside? thats got to hurt financially, at least I have done it the other way round.

[Signo_cypher]

If you read the forms corrently and fill them out correctly you still need toaccount for any "dividends" you recieve.



I believe that there are 2 elements of this - Chaild Tax Credits & Family Tax Credits - you may be entitled to one and not the other.

I still get an amount from them of about 0.87p - I spoke on the phone yold them how much I earnt and they were still happy that it was the right amount.

Don't forget as well that you can cliam for some stuff inbetween contracts.....

Thanks for the reply, I will wait till I get the form and give them a call.