Ltd co status and child benefit

[Trollie]

Did you know that since Arctic systems v HMRC
tax case if a limited company you can pay yourself a low salary and the rest in dividends if in profit??

You can thus arrange to keep your child benefit and many will.

Is this the Coalition's idea of fairness??

Yes although when we fill out our tax credit form we have to declare our payment from dividends. for example we earn 10k of which 5k is pay and 5k is dividends.

So the goverment could ask people to fill in a "household" form for child benefit?

Households that don't qualify for tax credit would not be asked..if they don't qualify for tax credit so pay each other just under 88 and dividends.

You're right but I suspect the number of couples involved would be a tiny proportion of the total population.

It does lead to the wider question of exactly how this change will be administered. I can't see any system that will be able to cope with it, will CB be paid in arrears ? will it change from month to month ? how will oevrpayments be collected ?

Its going to impossible to do properly and smacks of no thought having been given to the logistics of the situation.