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Going self employed and working tax credits

(9 Posts)
infamouspoo Mon 13-May-13 15:42:04

Our plan is to do this and set up a limited company. Initially we'll have to pay ourselves little and claim WTC and CTC and re-invest and profits. Is that ok? Or will they say there's more money in the company and we must pay ourselves more?

CogitoErgoSometimes Tue 14-May-13 12:17:50

You'll need to contact the Tax Credit people directly but I think the working assumption is that you pay yourself minimum wage

infamouspoo Tue 14-May-13 17:48:42

thanks. Will ring them. Maybe after I've strangled dh as this is his idea grin

leaderscorp Wed 15-May-13 05:03:46

Yes, there is no better way than to contact Tax Credit People directly.

EMS23 Wed 15-May-13 05:39:41

My DH is self employed and all Tax Credits wanted to know was estimated earnings for the year. Then, later, if it turns out higher or lower they make an adjustment on the next years Tax Credits.

So in your case, you would give estimated earnings as your wages.

But do check with them. Once you get through, they are generally very helpful on the phone.

infamouspoo Wed 15-May-13 16:34:54

its a total pain they look at last years earnings cos it means surving on 200 quid a week for a family of 4 for a year with no top up. It will be better when things pick up but this first year is going to be tough!
<dreams of yacht>

lubeybooby Wed 15-May-13 16:40:29

It's easy, just give them the estimate and then update them if it's different. They will write after a little while asking for an update smile

infamouspoo Wed 15-May-13 18:39:36

expected earnings this year will be about 27p I reckon. Sob. I'm too old for all this starting up stuff but dh is all excited.

leaderscorp Thu 16-May-13 07:19:42

Just pick up the phone and talk to the right person. You don't need to exert more effort in doing this.

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