Tax credits

Legacy_user

Hi all,

Am after a bit of guidance really.

My partner is ready to go into labour any day now as our baby is due tomorrow. She is therefore receiving statutory maternity pay and i have just come off of ESA as i have started my own limited company. We also receive housing and council tax benefit but only small amounts at the moment.

Being a new company, things will be tight and i'm not expecting to earn thousands straight away but should be able not pay myself for a little while.

I'm wondering am i better of paying myself or not to get more help with tax credits as if i pay myself, things will be extremely tight to stick to a set wage in the first couple of months.

Any help is greatly appreciated.

Thanks.

System

Anyone? Need help on this

zagfles

There are "notional income" rules in tax credits - such that if you avoid paying yourself in order to get more tax credits they will count what you could have paid yourself as notional income. See http://www.hmrc.gov.uk/manuals/tctmanual/TCTM04800.htm