Are we eligable to apply for tax credit

Karcalor

Hi, i was just wonderind do dividends count when applying for tax credit...my partner is on minimum wage and receives dividends ....varied amounts each year ....and i work pt earning approx £8k pre deductions. We have not applied for tax credit as we think my earnings plus his and dividends put us over the threshold....any advice?..oh 2 kids btw!

thanks in advance

pmlindyloo

karcalor wrote: »

Hi, i was just wonderind do dividends count when applying for tax credit...my partner is on minimum wage and receives dividends ....varied amounts each year ....and i work pt earning approx £8k pre deductions. We have not applied for tax credit as we think my earnings plus his and dividends put us over the threshold....any advice?..oh 2 kids btw!

thanks in advance

Useful document here:

http://www.hmrc.gov.uk/leaflets/wtc2.pdf

I believe that dividends are the same as profit related pay? Might need to ring and ask.

A long document so keep scrolling down!

zagfles

Yes dividends (plus the tax credit) count as income for tax credits, except for the first £300 which is ignored.

mummyroysof3

We get dividends from shares twice a year but as it is less than £300 I don't declare it

Horseunderwater

Dividends are not profit related pay. They are payments made by companies normally listed on the stock exchange and for which a board of directors decide what if any dividend they will pay per share out to share holders. Can be pennies to thousands sometimes. Although these days a company would need to be performing really well to pay out large dividends.
All the OP needs to worry about re dividends and Tax credits is the following rules: Their total gross income totalled together & any other income that comes to over £300, so if the Dividends do not go over that then they WILL NOT AFFECT the Tax Credits at all. HMRC only need to know when other income goes over £300 - So if the other income was £400 then you declare just £100 to them.