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

healy

Topov wrote: »

Then why mention it at all?

Why bring up an old thread for no good reason?

Teahfc

PasturesNew wrote: »

It reads to me that he will probably bung all that into a pension scheme.
Thereby only earning £11,200 between 2 people.
Thereby claiming tax credits.

If you owned your own home outright and were being taxed/NI'd 50% on the £70k it might seem much more sensible to bung the lot into a pension for the future.

This, I believe is legitimate. And it is how the rich manage to work the system.

I'd do it if I were in that position.

:rolleyes:Although not rich I have done the same said thing with my company profits and while the law allows this I feel I am within my rights to do so.

[Deleted User]

pennypuppy wrote: »

I think tax avoidance is done by two main kinds of people. Those who have worked really hard all their lives and paid tax and don't want to loose most of it to a tax man on their death bed and those like many politicians financial backers who pay £10 in tax even though they earn £50m by living in Monte Carlo for so many days a year.

As for the welfare state, it has been creamed for years by certain people who deserve nothing but a kick up the backside. The sad thing is that the people who really do deserve help from the state often do not get it because the system has been so abused (eg people using disability cars to taxi).

I fervently believe in the NHS and a decent standard of education for all, that takes money and taxes. I would not support anyone trying to defraud it.

I just don't think people should be so judgmental.

And I and i suspect many others on this board dislike sweeping generalisations,we are here to help people who have genuine problems not those who suddenly decide to pay themselves 70k a year less in order to defraud(and thats what it is)the system
I wonder why someone who has their own business and has in the last year paid themselves 81k feels the need to ask any questions on here,surely they have accountants to advise them,or did they just not like the advice they paid for

LizzieS_2

meester wrote: »

I am entitled to pay myself what I like, it is 100% definitely legal. The only question is whether I would be deemed as "avoiding income", by not paying any dividends, and have it (but what? - my dividend payments vary each year) classed as part of my income. That is a question of fact, and I was hoping for some sensible input on it.

As you can control the income, you will be avoiding income, so it doesn't look like you would be entitled anyway.

EDIT - Hadn't spotted the dates