Tax credits and limited company

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Jamash21 replied

30 December 2010, 11:36
Originally posted by Fred Bloggs View Post

Myself, despite what may be "legal" or whatever, I do not believe a contractor should manipulate their circumstances to claim benefits. It would appear to be the case here. Indeed, I understand that if HMRC deem that you have done this to claim benefits they will take action against you.

No not at all.. As I previously mentioned our income is totally transparent via Corporation taxes therefore we are and will be paying our taxes fair and square.
As I previously mentioned we are on our first year of trading and as such havevtaken all advice from other professionals so how we can beheld accountable for any misgivings is beyond me
It seems to me the way we are paying and operating is QUOTE : Normal in business
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Fred Bloggs replied

30 December 2010, 10:08
Myself, despite what may be "legal" or whatever, I do not believe a contractor should manipulate their circumstances to claim benefits. It would appear to be the case here. Indeed, I understand that if HMRC deem that you have done this to claim benefits they will take action against you.
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Jamash21 started a topic Tax credits and limited company

29 December 2010, 17:45
Tax credits and limited company

Hi myself and my business partner have operated our limited company for a year in feb and currently take £115 in wages each but give ourselves a company loan of an extra £415 per week.. This in tuen means we qualify for working tax credits or so I'm told as long as we transfer the loans to dividends as of the start of the new tax year for which we will then pay corporation tax on.
Can anyone tell me can we continue to claim working tax credits after the new tax year as we will still be on minimum wage next year and the company has already paid the taxes on the loan/ dividend payments??
We assumed that as of the new tax year we would have to inform tax credits of the dividend payments and cease claiming but we have been told as we have already declared through the business we can continue to claim this??
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