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

Lorian

meester wrote: »

Yes,that's the plan. Defer the dividends for now, and retire to Bali in a few years and pay out the money then when I would no longer be a tax-payer, and no longer entitled to benefits. In the mean time it would be invested within the company, growing for the future. Or the other option is to close down the company at some point, and the money then comes out as a capital gain, which is not income.

And my lifestyle will be plenty cosy, living off my savings of £100k+.

Sounds to me like "a Claimant depriving themselve of income in order to secure entitlement"

IANAL.

nottslass_2

meester wrote: »

And my lifestyle will be plenty cosy, living off my savings of £100k+.

Because your Obviously so needy I Just Hope that the Inland Revenue Don't mess up your claim and leave you destitute and unable to feed your kids like thousands of others ! After all your savings of 100k + will only substain your current lifestyle for little over a year !!

PS you might find that the interest Payable on your Poultry savings is counted as income so just be careful that you don't incur a overpayment of Tax Credits

pennypuppy

On a general point, if a person x works hard all his/her life and builds up a nest egg and pays lots of tax. Then looses his/her job income, I think it's right they should be able to claim help from the state. They have paid into it. I don't think it's fair to penalise them for saving.
As for the original poster - I don't know whether you are being defensive or just trying to wind people up. 100k doesn't go that far these days (though I would love it).

NAF_3

Meester, Notional Income is Income which is open to you but you deliberately avoid in order to become entitled to benefits, it can mean many things and I dont really know how it would apply, in practice, in your situation. Just declare everything to the HMRC and let them make a decision on the facts. If they make a mistake and pay you when they shouldnt it still sounds like you will be able to live with the paltry overpayment.

You will have to declare any shares you have aswell.

dmg24

meester wrote: »

Yes,that's the plan. Defer the dividends for now, and retire to Bali in a few years and pay out the money then when I would no longer be a tax-payer, and no longer entitled to benefits. In the mean time it would be invested within the company, growing for the future. Or the other option is to close down the company at some point, and the money then comes out as a capital gain, which is not income.

And my lifestyle will be plenty cosy, living off my savings of £100k+.

Says it all really. Sad little man.

The Benefits board is here to help people in need, not to assist you in playing the system.

If you have such a great business, I am sure that your accountant will be able to advise you on the best course of action to take.

meester

mitchaa wrote: »

Would you not be better paying you and your partner £5100 each so £10200 combined in order to escape full tax and NI.

At £5600 (£11200) surely your breaching IT and NI thresholds?? (NI around £5100 and tax at 5225)

Also, how on earth are you and your partner going to survive off of that kind of money with the lifestyle that you will be currently accustomed too? Are you 'really' going to hold the full £70000 dividends back or is there something you're not letting us know? Or are you planning on living in free housing with free CT benefit and just scraping by for a couple of years?

We have a base entitlement of £9.5kish in benfits. This falls to about £7.5k because of our incomes of £6k and £5.2k = £11.2k

That's about £18.7k/year.

I don't know what lifestyle you think I am accustomed to, but the base ~£20k plus savings will fund my existence quite admirably for at least 3 years.

Just because I earn £70k doesn't mean I need to spend it.

dmg24

On another thread, the OP recommends the following for liberals:

Send them to live in a council estate in Toxteth for a few years.

Perhaps he should do the same, and then consider taking money from the state that he clearly does not need?

meester

dmg24 wrote: »

Says it all really. Sad little man.

The Benefits board is here to help people in need, not to assist you in playing the system.

Need? As far as I can see the idea is to get what you are entitled to.

http://www.moneysavingexpert.com/protect/benefits-check

Is your family income under £66,000? If so, you may be entitled to benefits and tax-credits.

dmg24

meester wrote: »

Need? As far as I can see the idea is to get what you are entitled to.

http://www.moneysavingexpert.com/protect/benefits-check

Is your family income under £66,000? If so, you may be entitled to benefits and tax-credits.

Your true family income is not below £66K.

It worries me that people like the OP are able to become parents.

Your children must be very proud of you. Maybe they'll follow your example and turn into dole bludgers too.








(Dole bludgers being those who claim benefits when they don't need to, not all claimants!)

autismmum

this thread is very sad, i am so grateful for any government help, i paid my taxes when young single and healthy, now as a mum of two disabled boys and with fibromyalgia myself too,
i am so grateful that my hubbys 13k is topped up, we have been able to buy and almost pay off a semi in the country and both have 07 cars, we saved hard. the gov helps us with money for the boys and we used that for horse ridding and private school part time, we cant believe that the tax credits can be of such help to our family and that other people can be so mean as to purposly put them selves in a position as to need them.