Working Tax Credit and Being a Director

JohnB123_2

Hi all, Can we claim Working Tax Credit if owning a Limited Company? Just we dont want to setup business and get money that we do on benefits.

How do they work out the Working Tax Credit Amount?

I will only be paying myself £6000 per year or is that not adviseable?

Thanks

John

Hammyman

If your business makes no money, you'll get less than you do on benefits.

Do you have a clue how a Ltd Company works? I'm just trying to work out what you'll think you'll do if it makes more than you draw?

If you think it'd save you more tax than it would being Sole Trader, that boat has long and truly sailed.

Jowo_2

Are you asking if you can maximise your tax credits by paying yourself a modest salary and not drawing out any dividends even if your company's income is many times greater? In other words, are you planning to let the other income build in your business bank account or do you think your business won't have any profits greater than the 6k?