Diverting £50k of salary into pension fund to claim welfare benefits

atush

rich11 wrote: »

But thats the thing though he wont be surviving on £12k a year.With the benefits etc it is more like £50k a year he will be on

Which means he will be spending 38K a year of 'your' money on his family.

Zelazny

atush wrote: »

Which means he will be spending 38K a year of 'your' money on his family.

The way I see it, the government is saying that someone in this situation is entitled to £x amount of benefits. These benefits are removed if you work too much.

If he gave up his job, he'd get even more money from the state. I don't see why we should penalise those who work for a living and have a desire to support themselves, so don't really have a problem with the OP getting benefits while making massive pension contributions, so long as he does it within the rules.

Do I think it should be done differently? Hell yes! Personally, I'd rather benefits were provided in the form of food, clothing, etc so that a minimum standard of living were maintained while discretionary spending required you to go out and work, but that doesn't seem to be the way the government want to do things and as long as it's within the rules, I say more power to the OP.

zygurat789

rich11 wrote: »

But thats the thing though he wont be surviving on £12k a year.With the benefits etc it is more like £50k a year he will be on

Has anyone actually done the calculation, I tried the on-line calculator and came up with nothing like the figures the OP expected to receive from tax credits.

When my daughter was left with two pre-school children and only a part-time job c£3K pa she ended up on the equivalent of c£20K gross.

Tax credits are reduced by 41p for every pound earned over c£6400.
I think the OP will not get as much as he expects from tax credits.

Zelazny

zygurat789 wrote: »

Has anyone actually done the calculation, I tried the on-line calculator and came up with nothing like the figures the OP expected to receive from tax credits.

When my daughter was left with two pre-school children and only a part-time job c£3K pa she ended up on the equivalent of c£20K gross.

Tax credits are reduced by 41p for every pound earned over c£6400.
I think the OP will not get as much as he expects from tax credits.

With three kids, I get the following (using the calculator at https://www.turn2us.entitledto.co.uk/ based on single adult with three kids and 12.1k salary):

157.22 pw child tax credit
218.68 pw working tax credit
34.77 pw council tax benefit (I put down a council tax bill of £1,980 pa as in the OPs post #7)
164.94 pw Housing benefits (I put in LHA allowance of £750 pm as in OPs post #7)
47.10 pw child benefit

Total 622.71 pw.
= 32,558.88 pa.

Bear in mind that these figures are not taxable. The OP also has 12.1k taxable income, which should give a net amount of £10,590.36 after tax and NI, giving total net income of:
£43,149.24

In order to have this much left after you've paid tax and NI you'd need to earn somewhere in the region of £63k.

gadgetmind

Zelazny wrote: »

In order to have this much left after you've paid tax and NI you'd need to earn somewhere in the region of £63k.

I bet those on benefits think that those who work for a living are right mugs!

[Deleted User]

Why dont you leave the benefits for the people that need them!

God sounds so selfish! I personally couldnt care less if its legal or not!

leveller2911

Deleted_User wrote: »

Why dont you leave the benefits for the people that need them!

QUOTE]


I agree but a fair proportion of the "needy" don't deserve benefits but thats a whole new thread.

I don't agree with anyone "manipulating" the system for their own benefit..................

thistledome

Zelazny wrote: »

If he gave up his job, he'd get even more money from the state. I don't see why we should penalise those who work for a living and have a desire to support themselves, so don't really have a problem with the OP getting benefits while making massive pension contributions, so long as he does it within the rules.

But OP doesn't have a desire to support himself. He has a desire to let the taxpayer support him and his children whilst squirreling away vast sums of money so he can retire at 55, whilst said taxpayers will mostly be working until they're 67 to support him.

I don't understand why anyone is condoning such selfishness at a time when the country is in financial trouble.

Would any of you feel differently about this case if the OP was an MP and this thread was a leaked e-mail in the Telegraph? Be honest.....

gadgetmind

thistledome wrote: »

I don't understand why anyone is condoning such selfishness at a time when the country is in financial trouble.

What we're seeing is the natural and predictable consequence of heavily taxing the productive while richly rewarding the unproductive.

The unproductive would love to have his salary while still sitting on their butts, while he covets their benefits but is still prepared to work his socks off.

If you lower taxes and RADICALLY reorganise benefits, then the problem goes away.

xylophone

thistledome wrote: »

But OP doesn't have a desire to support himself. He has a desire to let the taxpayer support him and his children whilst squirreling away vast sums of money so he can retire at 55, whilst said taxpayers will mostly be working until they're 67 to support him.

I don't understand why anyone is condoning such selfishness at a time when the country is in financial trouble.

Would any of you feel differently about this case if the OP was an MP and this thread was a leaked e-mail in the Telegraph? Be honest.....

And in that connection: http://www.property-tax-portal.co.uk/taxarticle70.shtml