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Directors dividends and WFTC
flossie_flyby
Posts: 1 Newbie
Hello
My husband when starting up his own business was advised by accountants to run the business as a limited company. He pays a basic PAYE wage approx £6k a year and then takes the rest as dividend. (Granted thought not much, at mo upto about a further £8k ) I earn about £4k from my own new business although that will change soon as the business has started making money now.
However, we were told that dividends are not counted for the purpose of claiming WFTC, which were triggered off when we changed our circumstance (new baby) for CTC. We were told that we would recieve about £500 a month and I have asked 3 times about the dividends and asked our accountant. It doesnt seem right yet everyone says it is.
Anyone any experience of this?? Its worrying me sick that they are going to ask for it back, yet we have just managed to stave of repossesion due to debts and we are clawing our way back so we have used the money,
Thanks
Flossie Flyby
My husband when starting up his own business was advised by accountants to run the business as a limited company. He pays a basic PAYE wage approx £6k a year and then takes the rest as dividend. (Granted thought not much, at mo upto about a further £8k ) I earn about £4k from my own new business although that will change soon as the business has started making money now.
However, we were told that dividends are not counted for the purpose of claiming WFTC, which were triggered off when we changed our circumstance (new baby) for CTC. We were told that we would recieve about £500 a month and I have asked 3 times about the dividends and asked our accountant. It doesnt seem right yet everyone says it is.
Anyone any experience of this?? Its worrying me sick that they are going to ask for it back, yet we have just managed to stave of repossesion due to debts and we are clawing our way back so we have used the money,
Thanks
Flossie Flyby
0
Comments
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page 22 of this leaflet suggests they may be taken in to acct - http://www.hmrc.gov.uk/leaflets/wtc2.pdfI no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.0
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