Tax Credits Confusion

Darksparkle

Confused277 wrote: »

She did quote various regulations at me, and claimed that the only time it's acceptable not to earn minimum wage is if your self employed.
I expect I will have to reapply and see if they accept it. Our accountant was under the impression we were entitled but can't find anything that answers the specific question of nmw tax credits and ltd companies

You won't find it because it doesn't exist.

Don't reapply. Appeal their decision once you receive it.

Confused277

Thanks. They have sent a letter today detailing why we are not entitled so I will appeal once I receive it.

susannthe3cs

As you get Carers allowance he only actually has to work 16 hours a week to receive working tax for your household. With dla elements on as well you should be entitled to quite a bit a week as stated above .. Keep at them.

Confused277

Looks like I will have to appeal, I have spent most of the morning on the telephone to tax credits and spoke with 2 managers, both of whom are claiming its in their rules you must work 16 hours a week at least (no problem there) and earn nwm.
The second manager also said an appeal would be pointless, as I'm appealing against rules that have always been in place. So frustrating.
(Although darksparkle is correct, they cannot direct me to this piece of information, just that it exists)

i_want_to_believe

Not sure if this is still current

http://revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/entitlement/wtc-elements/

Directors

The position of Directors for WTC has caused much discussion in the tax world over the last few years. However, HMRC have confirmed that for WTC purposes, a Director, as an office holder, does not have to be engaged under a contract of service in order to claim WTC. This interpretation of the regulations means that Directors do not need to pay themselves the National Minimum Wage in order to claim tax credits as such a requirement only exists where there is a contract of service.

Confused277

i_want_to_believe wrote: »

Not sure if this is still current



Directors

The position of Directors for WTC has caused much discussion in the tax world over the last few years. However, HMRC have confirmed that for WTC purposes, a Director, as an office holder, does not have to be engaged under a contract of service in order to claim WTC. This interpretation of the regulations means that Directors do not need to pay themselves the National Minimum Wage in order to claim tax credits as such a requirement only exists where there is a contract of service.

Thank you! I haven't been able to find anything saying that! :T

Darksparkle

i_want_to_believe wrote: »

Not sure if this is still current

http://revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/entitlement/wtc-elements/

Directors

The position of Directors for WTC has caused much discussion in the tax world over the last few years. However, HMRC have confirmed that for WTC purposes, a Director, as an office holder, does not have to be engaged under a contract of service in order to claim WTC. This interpretation of the regulations means that Directors do not need to pay themselves the National Minimum Wage in order to claim tax credits as such a requirement only exists where there is a contract of service.

Wasn't sure if HMRC would accept info on a random website rather than their own.

The other option is just to declare the 16hrs needed to claim WTC. But then you'd lose the 30hr element (£810 per year).

Confused277

I would accept there decision if they could find the legislation and direct me to it. But they won't. It just is the rules apparently

tomtontom

Is there any scope for your husband making a liveable income from his self employment? After two years of long hours and very poor results, is it time to look for more productive employment?

Confused277

It takes time to build a business up as I'm sure you are aware. He puts a lot of effort into it and tbh to stop now when we have invested into the business too seems daft.
If we are not entitled to tax credits that's fine we will carry on as we are, but I have a friend who is self employed making a pittance and able to claim. So it just seems there rules are a little off.
But never mind. I fully expect the business to succeed in which case no help from anyone should be needed.