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Tax credits and self employed
AlisonHarrison
Posts: 181 Forumite
I have been looking at working tax credits and I have some questions:
1. There is a basic element of 1920, and you can get a couples element or a lone parent element of 1890. Does that mean that every one gets the 1890 because I cannot think of a reason how you could not get one of these. Why not just add it to the basic element?
2. If you run your business through a limited company and you are the sole shareholder and sole director, surely the figure to be taken into account for tax credits is the profit for the year rather than the amount you take out in salary and dividends.
3. What happens if the company makes a loss for the year and you cannot pay you. I thought I heard that you cannot get WTC as a director unless you pay yourself the mimumum wage.
1. There is a basic element of 1920, and you can get a couples element or a lone parent element of 1890. Does that mean that every one gets the 1890 because I cannot think of a reason how you could not get one of these. Why not just add it to the basic element?
2. If you run your business through a limited company and you are the sole shareholder and sole director, surely the figure to be taken into account for tax credits is the profit for the year rather than the amount you take out in salary and dividends.
3. What happens if the company makes a loss for the year and you cannot pay you. I thought I heard that you cannot get WTC as a director unless you pay yourself the mimumum wage.
0
Comments
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Lone parent element etc is for child tax credits. Working tax credits is different and goes on the amount you earn and you must be working 30hours plus if you have no children to qualify0
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