Income falling by £70k - how do I claim tax credits?

blahdog

Funny, I thought of this:

1. Biology. An organism that grows, feeds, and is sheltered on or in a different organism while contributing nothing to the survival of its host.

meester

liney wrote: »

Whether you are techically breaking the law or not, you are ensuring that 'I, The Taxpayer' pay for your exisitance, instead of paying your own way, which you are perfectly capable of doing.

Actually I will still be contributing £2k/year council tax, about £20k in corporation tax, and numerous indirect taxes, including VAT, Car Tax, Fuel Duty, Excise Duty, etc. And my children are being educated to a higher standard than the state offers, out of my own pocket.

Parasite:an animal or plant that lives in or on a host (another animal or plant); it obtains nourishment from the host without benefiting or killing the host
Leech: a follower who hangs around a host (without benefit to the host) in hope of gain or advantage
wordnet.princeton.edu/perl/webwn
Sound familiar?

Yeah, reading about them this morning.

http://www.dailymail.co.uk/pages/live/articles/news/news.html?in_article_id=513966&in_page_id=1770

Apparently one in five kids are growing up in family's dependent on benefits. In massively prosperous places like Islington, 46% of kids grow up in families where nobody works.

Let's hope something changes soon.

Murphy_The_Cat

meester - did you see my suggestions regarding Mrs m's employment ?

bestpud

Well, annoying as this thread has been, I have learned something I did not know about tax credit regulations!

It really needs sorting out imo as it cannot be an efficient or just way to distribute public money.

meester

Murphy_The_Cat wrote: »

meester - did you see my suggestions regarding Mrs m's employment ?

Yes.

There is basically no way, without being excessively 'creative'/totally exaggerating, to make her contribution to the business outside the scope of the new income shifting regulations. Hence I'm looking at tax credits.

lil_me

I was not being abusive just offering my opinion.

Anyone who earns more than enough to live on but is willing to take back passes to support their luxurious lifestyle while also building up their own business by financial support from every other tax payers money deserves every bad luck they get.....

If I knew my parents had brought me up in such a way (which they did not) I would hate them for it.

Imagine the parent/child conversation, 'Sorry I can't teach you how to be a good citizen but I can teach you how to claim benefits to support your expensive lifestyle when you are earning more than enough to pay for it yourself, don't worry son the tax payers don't mind a bit....' yeah right.

I'd rather tax my family paid went to any dole monger/single mum on benefits etc etc who are the ones who get slated on here on many occasions than someone who can afford to live very comfortably without them. You're asking the UK tax payers on here to give you a way of taking money from them when you have a large amont of savings and a successful business. It's like standing next to your car outside your childs private school begging for donations to support your lifestyle, if only taxation was done in this way, so we could choose who gets a chunk of what we pay into the system, your begging bowl would be empty!

Murphy_The_Cat

lil_me wrote: »

I was not being abusive just offering my opinion.

Anyone who earns more than enough to live on but is willing to take back passes to support their luxurious lifestyle while also building up their own business by financial support from every other tax payers money deserves every bad luck they get.....

Likewise, I'm not being offensive.

The OP is only doing what his accountant would recommend every small businessman should do i.e legally maximise his income by utilising every means at his disposal.
in other words, no different to anyone else who makes sure that they claim every benefit taht they possibly cam.

Possibly people are getting to upset at the messenger and missing the message.

The OP isn't doing anything different to most small businessmen, but he's being a niy more 'straight up' baout it.

Murphy_The_Cat

meester wrote: »

Yes.

There is basically no way, without being excessively 'creative'/totally exaggerating, to make her contribution to the business outside the scope of the new income shifting regulations. Hence I'm looking at tax credits.

have you considered Plan B ?
setting up a Company along the lines or Mrs meester consultancy and secretarial support ltd ? In which Mrs M's Company provides you with an invoice each month for 'secretarial and consultancy work' which you pay as a normal supplier, she retains it all as profit and pays HERSELF a salary & dividend from HER company.

lil_me

If someone came onto the forum who was self employed, stating their accountant said they should lie this year and say they were not working/only being paid £20 and should claim JSA, instead of the £40k they made last year, what would happen? They would be slated on this forum immediately.

I see that as no different to this case, actually this case is worse as single person JSA from our taxes for one year = under 3k a lot less than this person is wanting to claim from our taxes. All that is different here is the name of the benefit (and that it would be illegal to lie on a claim for JSA). Benefits should be what they were intended to be, to support those on low incomes, not keep someones high lifestyle for them while they make more money for themselves. The OP of course has only increased the anger in people by stating that their children attend private school because state schools are not good enough and that they have a large amount in savings to keep them in their nice life.

If this is what all people who have a small business do, use our money to make them more money (I am sure the honest ones do not), maybe the whole benefit system needs looking at. This case has annoyed me so highly that I have written several letters now including to national press and my local MP to express my anger that this sort of thing can openly take place with copies of the posts made on the forum. No wonder taxing is so high if we're all subsidising similar lifestyles while someone is putting what they could pay themselves into the bank.

I don't care which legal loophole they are using, it should be as illegal and as 'fiddling dole mongers' as some call it because when it comes down to it, it's the same thing, they are lying about how much they are paid to claim more of taxpayers hard earned money. I suppose the only difference is that those who do this are likely to have a lot more money available to them than those who work 'fiddle jobs' which then makes me feel even more anger as to where taxes are wasted.

Murphy_The_Cat

lil_me wrote: »

If someone came onto the forum stating their accountant said they should lie this year and say they were not working/only being paid £20 and should claim JSA, what would happen? They would be slated on this forum immediately.

If this is what all people who have a small business do, use our money to make them more money (I am sure the honest ones do not), maybe the whole benefit system needs looking at. This case has annoyed me so highly that I have written several letters now including to national press and my local MP to express my anger that this sort of thing can openly take place. No wonder taxing is so high if we're all subsidising similar lifestyles while someone is putting what they could pay themselves into the bank.

But the OP isn't lying to anyone, he's paying his wife and himself a taxable salary of £5600ish each and not declaring any dividends from his Companies profits (profits that have already been taxed BTW).

I know nothing of JSA, nor anything about the poster, or any other posts he has made.

As for the whole benefit system being looked at, I'm sure that before long HMG will spend £10bn to save £1bn and make a few 'feel good' headlines in the meantime.

Good luck on the response from the letter to your MP - i hope that he has more success explaining Company taxation, private taxation and the benefits system than most people can pick up :beer: