Contracting and Tax Credits

[chappers]

Hi,

Potentially going from a FTC to umbrella and was wondering peoples experience on claiming tax credits.

As I already get CTC [Child Tax Credits] I am assuming if 1 get x per day that Tax Credits will take the earned incoming before expenses/umbrella deductions ect?

tia

[LisaContractorUmbrella]

Hi,

Potentially going from a FTC to umbrella and was wondering peoples experience on claiming tax credits.

As I already get CTC [Child Tax Credits] I am assuming if 1 get x per day that Tax Credits will take the earned incoming before expenses/umbrella deductions ect?

tia

I am not an expert on tax credits but I would think that they would be based on your salary with the umbrella company rather than the contract value

[ContrataxLtd]

I am not an expert on tax credits but I would think that they would be based on your salary with the umbrella company rather than the contract value

I'd agree with Lisa, it's not something I tend to get involved with but believe it would be your gross salary with the Umbrella company that counts rather than the day rate. After all, you should have an over arching contract of employment with the Umbrella company so are an employee just like you would be at any other company.

Martin
Contratax Ltd