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Claiming WTC - sole director/shareholder
chicka
Posts: 16 Forumite
Hi
I have read conflicting advice regarding this.
Myself and my husband have never been able to claim for anything as we have always earnt well (and I wouldn't expect to have been entitled to anything either).
I set up my own business a couple of years ago to run whilst our eldest started school so I could also look after her. We also have an 8 month old now.
Unfortunately (massive shock I am still trying to get my head around this) my husband told me a few weeks ago that he wanted to split up and move out.
Now, although he will be contributing, I am aware that his payments are disregarded for tax credit purposes and I cannot manage on what I earn.
Therefore (although I never thought I would have to) I am going to claim WTC due to my income (which in 2016/17 will be £8060 as a salary and up to £5k in dividends).
As a director I am aware that the NMW rules dont apply (although actually I do 16 hours a week so it is above the NMW amount).
Will I still be able to claim for WTC based on these figures - I have used various calculators and it seems like I will although I am a little worried as I am not an employee for someone else but for myself and the fact that I am taking a low salary may flag up somewhere in the system?
I am taking out all the profits (either by salary or post corp tax dividend) so its not like I'm leaving anything in the business. Once my second child is at nursery more and then school I can build it up and will stop being eligible for WTC so it isnt a long term thing.
Thanks for any replies and sorry for the long post!
Chicka
I have read conflicting advice regarding this.
Myself and my husband have never been able to claim for anything as we have always earnt well (and I wouldn't expect to have been entitled to anything either).
I set up my own business a couple of years ago to run whilst our eldest started school so I could also look after her. We also have an 8 month old now.
Unfortunately (massive shock I am still trying to get my head around this) my husband told me a few weeks ago that he wanted to split up and move out.
Now, although he will be contributing, I am aware that his payments are disregarded for tax credit purposes and I cannot manage on what I earn.
Therefore (although I never thought I would have to) I am going to claim WTC due to my income (which in 2016/17 will be £8060 as a salary and up to £5k in dividends).
As a director I am aware that the NMW rules dont apply (although actually I do 16 hours a week so it is above the NMW amount).
Will I still be able to claim for WTC based on these figures - I have used various calculators and it seems like I will although I am a little worried as I am not an employee for someone else but for myself and the fact that I am taking a low salary may flag up somewhere in the system?
I am taking out all the profits (either by salary or post corp tax dividend) so its not like I'm leaving anything in the business. Once my second child is at nursery more and then school I can build it up and will stop being eligible for WTC so it isnt a long term thing.
Thanks for any replies and sorry for the long post!
Chicka
0
Comments
-
Yes you can claim WTC's and CTC's with those figures.
You are an employee of your limited company. The £8,060 is run through your payroll.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
Thanks - I guess I'm just a bit nervous having never claimed before I keep thinking they'll come up with a reason why I cant.0
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