Buying Decisions

leveller2911

arcon5 wrote: »

What rules are they breaking?
It's no different to people for example telling their employer under PAYE they won't work more than x hours as it affects y benefit. Which is quite rife is some areas.

Two wrongs never did make a right......... Keeping earnings as low as possible to qualify for tax credits whilst keeping much of the profit within the company is not morally right.

If the OP doesn't take his dividends in any particular year then not only is that money left in their business to be taken out at a further date they also have a whole years Working tax credits and child tax credits award as extra income. They would have paid corporation tax at some point in both examples.

The OP's business is being subsidised by the state in the same way that big businesses are when they pay NMW to their employees. 99% of posters on here slate the likes of Tescos etc for their ethics but it seems ok for small businesses to act in the same way.....ie : play the system