Joint WTC claims where wife is employee of self-employed husband

graham44

Where a joint working tax credit claim has been made in the past and the wife who was not previously employed in past tax years then becomes the employee of her self-employed husband (thus reducing his taxable profits and providing her with a salary of an equivalent amount) the total income of the joint couple remains unchanged.


In these circumstances is there still a requirement to report her as having started work if that income is below the lower earnings limit ?

Darksparkle

Report to who? HMRC for tax/PAYE purposes? Or tax credits?

graham44

Tax credits

Dazed_and_confused

Your wife has a new job and source of income.

Sounds like a change of circumstances to me.

On what basis would she not need to report this?

graham44

Because joint income level has not changed?

graham44

Meaning external income.

Darksparkle

Why wouldn't you tell them? It's a change in circumstances. Why would you try to hide it?

Your income will reduce so you'll need to reflect her income increasing or the claim would be incorrect.

maisie_cat

I would have thought that technically the joint income will increase a as a previously non working party is now using their tax allowance up resulting in a higher net pay.

Darksparkle

maisie_cat wrote: »

I would have thought that technically the joint income will increase a as a previously non working party is now using their tax allowance up resulting in a higher net pay.

Tax credits is based on taxable pay, not net.

graham44

Accountant initially advised in writing no need to report since her small wage below LEL but suspect he has not considered the joint tax credits situation.

sammyjammy

graham44 wrote: »

Accountant initially advised in writing no need to report since her small wage below LEL but suspect he has not considered the joint tax credits situation.

Why would you take an accountants advice on benefits? Just declare it, I don't understand why you are prevaricating.