Reply to: Tax Credits

[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?

[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 )

[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.

[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!

[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!

[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 !!!!

[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.

[chris79]

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

[Sockpuppet]

Child tax credits....


Blooming hell...I'm sucha nipper my partents are still claiming thiers for me

[webkey]

household income includes salary, savings and dividend income.

Thanks for the input.....we all know this country rewards those who choose not to work and and just breed for a living so if I can get the chance to add a few extra £££ to my pot then I think us grafters deserve it and to also balance out the various stealth taxes we get hit for year in year out, k-ching k-ching!

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.

[MPwannadecentincome]

you probably shouldn't be contracting if it's not making you enough.

I don't understand this statement at all - if they were not contracting they would be in a permanent job - which still might not pay enough - or be on the dole - which definitely does not pay enough.

There seems to be an underlying assumption that all contractors have cash to spare, perhaps this is true if you are single, if you have a family / kids all the spare cash gets sucked up in bills - and for those who are (un?)fortunate enough to live in the south the bills are much higher as larger houses in an area with good schools are very very expensive (even though prices have eased off that does not reduce the mortgage).

[expat]

Nope - I'm expecting to get what I am entitled to from the system. Not a penny more, not a penny less - if the government introduces a scheme that pays money to those who earn less than a certain amount and have children, then why shouldn't I claim it because of my occupation??

When I first started contracting, I earned less than the threshold, so claimed the tax credits to which I am entitled. If I still earned that amount, I would still claim it - anyone who is entitled to claim it and does not is a fool.

I agree with that and apologise (get it while you can, it doesn't happen often) for suggesting otherwise.

I happen to think that the threshold is too high; and that you probably shouldn't be contracting if it's not making you enough not to need this. But these points are indeed by the way. I shall certainly be travelling to contracts on my wrinklies' railcard in 2 1/2 years time, with no shame.

[TheFaQQer]

You already do qualify for shedloads of easy money. You're a contractor.

As for looking to get more for nothing, from a relatively small pot intended for helping the least well-off, have you no shame?

PS This is me being gentle.

Nope - I'm expecting to get what I am entitled to from the system. Not a penny more, not a penny less - if the government introduces a scheme that pays money to those who earn less than a certain amount and have children, then why shouldn't I claim it because of my occupation??

When I first started contracting, I earned less than the threshold, so claimed the tax credits to which I am entitled. If I still earned that amount, I would still claim it - anyone who is entitled to claim it and does not is a fool.

[expat]

Hi,

First post so please be gentle.

I have my own Ltd co. and have been contracting for a number of years now.

Change of circumstances next month with the arrival of my first child. I was just wondering whether I would qualify for any easy money such as tax credits etc?

Thanks in advance.

Webkey.

You already do qualify for shedloads of easy money. You're a contractor.

As for looking to get more for nothing, from a relatively small pot intended for helping the least well-off, have you no shame?

PS This is me being gentle.

[MPwannadecentincome]

household income includes salary, savings and dividend income.