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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

in claiming tax credits?

71 replies

CuriousJorgina · 10/02/2011 16:46

Should we all claim the benefits to which we are entitled? Or should we ignore them if we don't 'need' them?

I'm just finishing maternity leave and will not be going back to work.

Have heard from friends at our local NCT group that I might be eligible for around £500 a month in TCs.

Thing is, my OH earns around £80k a year, but only pays himself £25k or so, so as not to pay tax at the higher rate. The remainder is paid in dividends which are taxed at a lower rate (about 18%, I think).

One of my friends is in the same boat, and has been getting around £500 a month which all gets saved away for a rainy day etc.

Clearly, I don't need this money but, of course, it would be nice.

Thoughts?

OP posts:
amothersplaceisinthewrong · 10/02/2011 17:02

Yes, the small salary and dividends thing is perfectly legal. I also work in an accountant's office and we have loads of clients who operate this way. They don't get tax credits though!

Chil1234 · 10/02/2011 17:02

YABU... and this sounds like a right royal wind-up.

ambarth · 10/02/2011 17:04

What a pile of cock. Wind up.

reelingintheyears · 10/02/2011 17:06

Chil and ambarth....yup.

coccyx · 10/02/2011 17:11

But you don't NEED the tax credit, despite your rather dubious 25k income

GypsyMoth · 10/02/2011 17:13

so to get the tax credits op thinks they will get....she needs to do what? omit info on the forms?

Chil1234 · 10/02/2011 17:15

It's a wind-up. Someone in the alleged position of the OP would not qualify for £500/month in tax credits for a start. It's a very clumsy attempt to get MN-ers all shouting about tax avoidance.... a slight variation on the 'benefit scroungers' threads that we know and love so well :)

PersonalClown · 10/02/2011 17:16

We get approx £500 a month in TC as DP barely earns 18,000 and we have an boy with ASD.

You don't need the money. Budget better if you want to save for a rainy day like most people.

BoysAreLikeDogs · 10/02/2011 17:17

when we claimed TC quite a few years ago we got summat like £504 per ANNUM and that was about £30k PA

I think your friends are yanking your chain about the amount they are getting

*disclaimer we stopped claiming in I think 2006 so my up to date knowledge is, well, not up to date

BoysAreLikeDogs · 10/02/2011 17:18

oh poo bums it's a windup innit

grrrr

ambarth · 10/02/2011 17:18

or make us believe too much gets paid out in tax credits.

NonnoMum · 10/02/2011 17:18

This has got to be a wind up.

Tis a morally reprehensible question.

Journo-troll.

expatinscotland · 10/02/2011 17:19

That's great, to know that people like us earning fuck all working all the hours God sends go to pay people like you.

And people think people on the dole are benefits scroungers!

You should think black burning shame of yourself and I hope your friend goes to hell.

I really do.

We're so poor it's sick and there she is, taking money she doesn't even need off the backs of people like us.

Changeisagoodthing · 10/02/2011 17:20

Everyone self employed does this. It's tax avoidance (perfectly legal) not tax evasion ( bad and illegal).

PersonalClown · 10/02/2011 17:20

I know it's a troll but I have major raging OMT and it NEEDS to be unleashed!!

PersonalClown · 10/02/2011 17:20

OMT??? I've invented something new!! Of course I mean PMT.

reelingintheyears · 10/02/2011 17:22

OP hasn't been back since OP...
What does THAT mean?

GypsyMoth · 10/02/2011 17:23

and mumsnetHQ say they are hunting down the trolls...and banning them,this is 2 troll threads in half an hour that i have read!!

reelingintheyears · 10/02/2011 17:24

ILoveTiff...
What was the other one?

FabbyChic · 10/02/2011 17:27

Some people are just fucking greedy bastards.

I don't need it but it would be nice.

What a crock of shit.

BrianAndHisBalls · 10/02/2011 17:27

OP - You remind me of my ex friend also called 'Georgina' actually.

Her DH paid himself a pittance salary and then company dividends to her to beat tax, and also to avoid paying the correct CSA to the mother of his first child. Nice.

GypsyMoth · 10/02/2011 17:36

other thread was the getting young dc to do housework one!!

i might have been pulled tho

PaisleyLeaf · 10/02/2011 17:36

hahaha
good one!

houseworkwhore · 10/02/2011 17:36

Aims flame thrower.....

Shoooootttsss and flames

Biscuit
curlymama · 10/02/2011 17:48

Dh does the basic salary/dividends thing as he is self employed. It's not immoral, it's not illegal. It's how we manage to afford to live seeing as he doesn't get sick pay, holiday pay or any other type of perk from being employed buy someone else.

We would be entitled to TC's but I'm too scared to claim in case either we or them mess it up and we end up having to pay back loads of money we have already spent. I've heard a couple of horror stories and it's put me off. We could do with the money, but we don't desparately need it. I think TC's are to generous.