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Tax credits when self employed?

(12 Posts)
witsender Tue 15-Mar-16 22:13:07

Dh has just moved over to being self employed. He has set up a ltd company under which name he operates. Maybe this means he is an employee? Clueless!

Anyway. The majority of money he makes needs to go back into the company to grow it and buy assets, can he pay himself a salary and claim tax credits?

Owllady Tue 15-Mar-16 22:15:30

Yes but you'd have to pay them back if you made too much money, over threshold, whatever it is
You need an accountant really

Owllady Tue 15-Mar-16 22:16:49

Yes he can pay himself a salary and you can claim tax credits btw. I don't know why you started this thread on mumsnet. I'd get it deleted
confused

witsender Tue 15-Mar-16 22:23:14

Why? I'm asking a money question in the money forum? We're not looking to make any money. He is going to be earning a pittance for months, I'm trying to up my hours at work but they are few and far between.

ThroughThickAndThin01 Tue 15-Mar-16 22:27:56

Why on earth should the op get the thread deleted? confused

No idea op. Hope you get an answer.

VertigoNun Tue 15-Mar-16 22:31:20

Have you got an accountant?

witsender Tue 15-Mar-16 22:33:12

Yes, I think so. He said we wouldn't really need him until it comes to tax return time.

Owllady Tue 15-Mar-16 22:36:35

I wasn't having a go at you. I think you need proper financial advice off an accountant that deals with small ltd companies like your husbands (ie like your husbands)

I wasn't being bitchy, honestly!

He could ask his colleagues who are contractors who they use

FusionChefGeoff Tue 15-Mar-16 22:39:12

Definitely get in with the accountant now so he can advise on how to structure the business financials to maximise tax allowances etc. If you wait until you've been trading a year (I think it can be up to 21 months before u have to submit your first company accounts ) you might have missed something pretty major!

FusionChefGeoff Tue 15-Mar-16 22:40:44

If he pays himself a salary, he gas to register with HMRC as an employer and also submit monthly payroll via a downloadable PAYE system. There are fines if you don't do this properly or on time so he needs to get professional advice ASAP.

witsender Wed 16-Mar-16 07:12:29

Hmmmm, interesting. I'll have a chat with him and check that he is on top of that. Thanks!

AveEldon Wed 16-Mar-16 18:02:56

you don't need an accountant

he can pay himself a small salary and then claim tax credits
you need to check if there is a minimum number of hours a week he needs to work to claim
best to claim the tax credits asap as they will only back date them 3 months

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