Is this how Tax Credits work?

[zazas]

So my friend has a one year old does not want to go back to work. Her husband who is self employed does not earn a huge amount averaging about £900 a month but by claiming tax credits etc (they have 2 children) and with his income low they are entitled to nearly £700.00 a month in tax credits etc - £1700 with child benefit. As she says it makes no sense to go back to work part time and pay childcare or her husband to work harder when they can earn this which they can live on. They always take a month off in summer to camp in Europe and probably another 4 weeks in holidays spread throughout the year and this 'helps' to keep his income low.

If that is the case why don't more people (or do they) do this rather than work to earn just a tiny bit more? Or am I missing something here?

I think you are right morethanpotatoprints :)

Morethanpotatoprints that's how they worked mine out, so if its incorrect I'd love to appeal it, but I did check it with 3 different people.
I've also 2 other friends who have been stitched up that way.
I'm not saying I'm right your wrong, but that's how they worked it out, they weren't interested in the wages or lack of them just the profit.

Can'tbelieve

I guess its different for particular circumstances. Maybe we have very different circumstances. I don't have another income apart from the wage I receive from dh. His is also a LTD company, so may be different. I know they said that business profit wasn't assessed unless we took money from the business, then it became an income.

hi i am just wondering if anyone can help me ?
I live with partner and due to have a baby in august .
i only work 25 hours at the moment .
i want to go back to work after a couple pf months of baby being born .
but dont know if its worth it .
partner earns over 30 gran a year
but i only ear £700 a week
will i be entitled to tax credits ?
or not as partner earns to much thanj you xx
aaisha x

The cut off point for one child is £26k so if this is your first child you would not get any tax credits if you gave up work, just child benefit of £20 ish a week. If you did go back to work you may be entitled to a little help with childcare costs, you could try one of the benefit calculaters to see if you would be eligible.