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Class B shares and Tax Credits
rorysdad
Posts: 161 Forumite
I suspect this one may be for an accounaant to answer.
I have negotiated a wage increase at work. I currently get Working Tax Credits - earn £20K with 2 kids aged 12 and 5.
My boss in association with his accountant has suggested that they will increase my wage to £25K pa - made up of 'wages/salary' and 'Class B' shares which will irrespective of profit make up my wages to £25K - they have said that for instance I will be paid £15K pa (paid weekly) 'wages' and an additional £10K pa (paid weekly) in 'dividends from Class B shares'.
This is advantageous to my employer as he will not have to pay National Insurance on the Class B share dividend payment (which he would pay if it was wages / income)
Question: do I need to disclose the Class B element of my weekly wage to the Tax Credits people?
Rory's Dad
I have negotiated a wage increase at work. I currently get Working Tax Credits - earn £20K with 2 kids aged 12 and 5.
My boss in association with his accountant has suggested that they will increase my wage to £25K pa - made up of 'wages/salary' and 'Class B' shares which will irrespective of profit make up my wages to £25K - they have said that for instance I will be paid £15K pa (paid weekly) 'wages' and an additional £10K pa (paid weekly) in 'dividends from Class B shares'.
This is advantageous to my employer as he will not have to pay National Insurance on the Class B share dividend payment (which he would pay if it was wages / income)
Question: do I need to disclose the Class B element of my weekly wage to the Tax Credits people?
Rory's Dad
0
Comments
-
it not just child tax credits you get? The limit for working tax credits is 17k.
I would imagine for any means tested benefits yes you have to declare any income you have0 -
Dividends are investment income and as such have to be declared.
The first £350 in each year is ignored.If it’s not important to you, don’t consume it0
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