Emergency Budget: tax credit cuts for millions

tizzy333

If he's self employed, he can't "pay himself a wage". Only if he were a limited company could he do that. So it's unlikely he can avoid tax that way.

So I doubt reporting him, for investigation will help in any scenario I can imagine. Perhaps if she believes he is self employed yet contradictory "paying himself a wage" she actually has no idea as to his status alone, much less any idea as to his profit or income tax.

deepmistrust, you are correct, I casually used the expression "self-employed" as it was easier than explaining that he is a director of his own limited company and does therefore qualify to pay himself a wage, I believe company directors can exempt themselves from the national minimum wage legislation and therefore he can pay himself whatever he wants. he would always make sure that the books balance,taxes paid etc and therefore there would be nothing to "report". the company accounts are available for inspection and are squeeky clean.
and it still doesn't change my original point that if the absent parent has no money there is no child maintenance for the CSA to get hold of and to get back to the original thread, any changes that affect single parents on low income re tax credits and child benefit freeze really count

asandwhen

patchwork_cat wrote: »

We don't both work (don't make assumptions) and with the change in NI it is £91. Plus as my DH works in Local Government he is having a 3 year pay freeze - slightly more than 'doing our bit' as you put it. With freeze in child benefit and his pay freeze + rise in VAT I would argue that we are quite seriously worse off.

Not helpful to suggest that we all have to do our bit is it. The point of this thread is to identify how the budget is affecting people, I thought this bit had gone under the radar and people were not aware as I wasn't.

Im sure you are well aware that the £91 NI you talk about was agreed by the previous government and was not in this budget.

Child benefit pay freeze will cost you about £20 a year per child (less than £2 per month)

Yes the VAT is going to hit everyone -

Your husband and myself will be getting a pay freeze but we have been lucky that we have not had to have one previously - my wife works in the private sector and hasnt had a pay rise for 3 years until this year.

I would say you are no worse off than most people. I am just happy it is not worse.

Deepmistrust

tizzy333 wrote: »

deepmistrust, you are correct, I casually used the expression "self-employed" as it was easier than explaining that he is a director of his own limited company and does therefore qualify to pay himself a wage, I believe company directors can exempt themselves from the national minimum wage legislation and therefore he can pay himself whatever he wants. he would always make sure that the books balance,taxes paid etc and therefore there would be nothing to "report". the company accounts are available for inspection and are squeeky clean.
and it still doesn't change my original point that if the absent parent has no money there is no child maintenance for the CSA to get hold of and to get back to the original thread, any changes that affect single parents on low income re tax credits and child benefit freeze really count

Thank you for clarifying his position, you are correct, as a director he can exempt himself from minimum wages.

However, I assume he has to declare his wages and dividends to the CSA, so if he is paying himself a (below) minimum wage, he is also actually only living on a (below) minimum wage. He can't declare a low wage, then somehow draw other money out of the business for his own use.

patchwork_cat

Tizzy I have stated that I am not complaining about our lot, we are VERY fortunate, although we have worked very hard and continue to do so, and like others have made choices , I am pointing out that public sector is not the cushy number people think AND there is as usual hidden items in the budget.

Deepmistrust

I have no idea why certain folk think that freezing pay and child benefits is OK and no one will suffer, whilst completely ignoring a large VAT rise. Spot the obvious.

asandwhen

Deepmistrust wrote: »

I have no idea why certain folk think that freezing pay and child benefits is OK and no one will suffer, whilst completely ignoring a large VAT rise. Spot the obvious.

Noone is saying people are not going to suffer - we are saying that its not as bad as we thought (well I thought) I am reasonably pleased. of course I would rather keep the money but Im ok to do my bit.

Deepmistrust

asandwhen wrote: »

Noone is saying people are not going to suffer - we are saying that its not as bad as we thought (well I thought) I am reasonably pleased. of course I would rather keep the money but Im ok to do my bit.

If you think you will be fine with an increase of 2.5% of vat and a corresponding freeze on wages and benefits, then I'm genuinely please for you.

It's the patronising self-righteous brigade with the "i can manage OK, so should everyone" mentality, that my post was aimed at.

asandwhen

Deepmistrust wrote: »

If you think you will be fine with an increase of 2.5% of vat and a corresponding freeze on wages and benefits, then I'm genuinely please for you.

It's the patronising self-righteous brigade with the "i can manage OK, so should everyone" mentality, that my post was aimed at.

We will not be fine - it will hurt and we will have to cut back but I believe we are better off than other countries who have been hit harder - Greece for instance.

Deepmistrust

Unlike Her Majesty, most people don't have vast fortunes to fall back on. Squeezing already tight family budgets, when there were still many more opportunities to reduce this deficit by other means, is still a tragedy.

Especially as it was never those families on tight budgets that put this country in this situation in the first place. "Call me Dave" may claim everyone is in this together, but clearly some are in it more than others.

And paying pathetic lipservice to the banks part in this by promising a mere "bank levy" does not come close to righting the wrongs that particular industry has caused in terms of misery to billions.

Deepmistrust

asandwhen wrote: »

We will not be fine - it will hurt and we will have to cut back but I believe we are better off than other countries who have been hit harder - Greece for instance.

The working class people of Greece, like the people of Britain did not create this mess. Yet they are the ones who will suffer the most.