Working Tax credits question

danno531

Hi Everyone,

Im in an interesting dilema at he mo, im self employed, with two kids (one newborn & a ten year old) my partner is currently out of work, after tax and ni I took home £24K last year.

What I am proposing to do is 'employ'my partner for 16+ hours a week on minimum wage ( annually £4500 ish) reduce my wage to 19.5K and take advantage of using her tax free allowance.

We want to know if we qualify for WTC and how we go abot this, cos being staright i work very hard and im finding it near impossible to support a family of 4 on 24K a year.

Any help greatly recieved.

Many thanks

Danno531

dmg24

You will not qualify for WTC on a joint income of £24,000. Do you claim CTC?

leveller2911

Hi Danno,
I'm sure someone knowledgable will be along shortly to advise.I'm self employed and my OH is a partner in the business which allows us to use her personal tax allowance to reduce our tax liability, not much but it all helps..

With regards to WTC etc our household income is £28k net and we get £400 per year CTC with 2 children, 2 more children may make some difference, other than that try and economise or work more hours if possible......Good luck......

viktory

leveller2911 wrote: »

2 more children may make some difference .

OP has two children, not four.

zagfles

Do you work 30 hours? If so what you propose to do should make no difference to your tax credits at all, you are simply reducing your income and increasing your partner's by the same amount. Tax credits are assessed on joint income. Unless you intend claiming for childcare, but it doesn't sound like it...

You will of course save tax, but in cases like this HMRC might want evidence that she is actually doing work to the value of what you pay her.

leveller2911

viktory wrote: »

OP has two children, not four.

I stand corrected, thinking on the cuff, if they whacked out another 2 children it may be profitable...:D