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

James123_2

I think the system is warped so can't really blame the OP - his move is legally if not morally correct.
As a newbie to all things benefit-wise, I think I'd scrap TC and raise the threshold for paying tax - why tax on £5k + only to give-back through a hugely expensive and cumbersome system. I now know of many folk who deliberately keep their incomes low as the TC will kick-in with help. I don't blame them - it's the system that's rather warped. As for a 70k drop to benefit - read through the op's thread again. This is a wind-up ... I'm sure!

a_choc_2_L8

''I think you'll find that you are not paying to educate my children, because one is a baby and the other is private school. State schools don't provide adequate education any more, so I'm paying for a proper education to ensure that my kids are productive and successful themselves in the future.''


I'm not usually someone who post's on these boards, but I lurk alot.

Something in me wanted to post a response to this though!! It made me laugh so much. You want to ensure that your kids are successful, well that is not bought I'm afraid!!! :rotfl: My father (extremely rich) has 2 families. Myself and my brother were put through state education as my parents divorced. His second family (my 2 step sisters) were privately educated at great expense.

Step sister no.1 got the same grades as me (average), did not further her education, does the same job as me with the same below average earnings.

Step sister no.2 went further in education (uni) as did my brother, graduated and has good job. My brother is also a high earner too.

As for the tax credits, posts like this don't suprise me. We live in a world of WANT and this is the obvious outcome. It is very sad indeed that you would WANT to gain financially in this way when you obviously dont NEED to. What a great example to your kids.... 'Dont worry kids you can anything you WANT.. but if you NEED me I'll be in Bali...

With the money you make in tax credits, maybe you'll be able to buy them some emotional stability too, when they need therapy from not being able to live up to expectations from their father.

flipcat

He, He, He, this post is a wind up,hes winding everyone up by coming back for more,this post has gone on and on,surely by now hed be gloating his next success(getting his golden tax credits he needs for his deprived family) if he was genuine instead of bragging,maybe hes lonely and wants to chat on here who knows .......but definately a wind up.

Dithering_Dad

I've just been directed to this thread when I asked a similar question about reducing my income by retaining more in my LTD company accounts and the effect it would have on tax credits.

Not sure what meester did in the end, though I'd obviously be interested in finding out, but when I did the calculations I found that by not taking the tax free dividends from your PAYE salary level (say £11k) and the 40% tax threshold £34k you are actually losing more money in tax free dividends than you're gaining in tax credits.

A better and more tax efficient solution would be to pay yourself £11k (or so) in salary then £26k in dividends. You would then only pay tax and NI on the £11k salary - so for an income of £39,888, you'd pay £1601 in tax.

You'd then also qualify for tax credits of £547.50 per annum.

So to recap, income (inl. tax credit): £40435.50
Tax & NI: £1601.00

Total Net Earnings: £38,834.

dmg24

Dithering Dad,

Welcome to the Benefits board.

To get the most accurate information for your own situation, you would be best to start your own thread.

mitchaa

DD...

Immoral not illegal, its a loophole that is open and at first i disagreed with it but if its open and its legal, why not use it to your own advantage?

If i were SE, i would probably use this loophole too and i imagine the majority of people here would. I resent paying tax as much as the next person. I see it being wasted on the Karen Matthews of this world and so on and think what thanks do i get :rolleyes:

I didn't agree with this thread at first but the O.P and DD are doing nothing illegal here. (Many people on benefits are falsely claiming, which is worse?)

DD...I would check your entitlements again, with an income of ''£11k'' you would be entitled to a lot more than £547pa.

Tax credits alone for 1 child would be £2085+£545, add £2085 for each additional child, and a further £545 for a baby element if you have a child under 1. If you have any disabled children, there are big disabled premiums, £3k+ for each child.

Im not sure on the workings of the WTC system but i would imagine you would also be able to claim WTC, along with council tax benefit and if in rented accomodation, LHA.Your children will also get EMA for attending school, perhaps free school dinners aswell

Its a money loophole that the idiots in power have left open. If its there, use it, why not? I suspect you have paid a lot more in than taken out? If so, it's your duty to recoup some back

How many children do you have, i'll work out a few calculations for you

Bring the country to its knees further i say. You may actually be helping out, as hopefully the imbeciles that keep the accounts books will notice that the increasing level of benefit payments to the ''poor'' is unsustainable and do something about it....Here's hoping:rolleyes:

Oh and another 1....You will also get help with your childcare bill if you have any kiddies in nursery upto 80% All that amounts to quite a bit of money, the reason i suspect Meester claims that he lives like royalty.

My post is a wind up of sorts, myself and DMG are old pals and i know it will drive her up the wall;)

Seriously though, you know fine well its immoral, but if its open to use and abuse then its seriously worth thinking about especially as it remains on the good side of the law

dmg24

housesitter wrote: »

What an utter bunch of self appointed morons that seem to be on this thread. :rolleyes:
I may not post on the MSE forums much, I read a lot. I search a lot. Lots of people do.
A high post count means sweet FA. It's quality not quantity and you're all letting yourselves down today.

I do however post a ridiculous amount on other unrelated external forums and moderate several.
I can that that the number one bug bare is n00b's who do not search for old and relevant posts but bring up the same questions time and again.
I for one, and I'll speak for my fellow moderators, love to see an older discussion with merit coming back from the dead.

What I tend to find, at least on every other forum on the internet, is that people who ask something which has gone before get flamed.
People who research find the older / established members who actually have the knowledge are more inclined to help out because the person has shown a willingness to help themselves. :cool:

The actions of a few people on this board with high post counts show more about their inadequacies than DD's supposed "not sticking to the rules".

As for the self congratulatory post thanking, you guys need to get out more. Seriously.:rotfl:


If it's not too difficult for you, it would be nice to have a discussion on the points he has raised. There are a lot of people watching the thread whence he came.

Welcome to the House Prices and the Economy board Part 2! :rolleyes:

Honestly guys, if you have a Benefits query, feel free to start a thread. If you don't ...

Dithering_Dad

Zara33 wrote: »

:eek: Gawd they eat you alive over on that board :rotfl: sorry DD i'm taking this thread way off topic

Hi Zara, just saw your avatar. Does one of your kids have autism?

Zara33

Dithering_Dad wrote: »

Hi Zara, just saw your avatar. Does one of your kids have autism?

Hey DD yeah my son does.

Dithering_Dad

Zara33 wrote: »

Hey DD yeah my son does.

Are you getting support from your LEA for his schooling?

(assuming that he's of school age).