From: "Andy Lord" 
Newsgroups: uk.finance
Subject: Re: Tax Credits Questions
Date: Thu, 29 Jan 2004 10:48:51 -0000


"Andy Pandy"  wrote in
message news:bv8m0h$fgr$1@news8.svr.pol.co.uk...
>
> "John"  wrote in message
> news:bv7cuf$palbs$4@ID-190752.news.uni-berlin.de...
> > Hi,
> >
> > I wonder if anyone could give me some advice/opinions
> > regarding Tax Credits. I have looked at the websites
> > but could do with some human input ;-)
> >
> > My salary in 2001-2002 was £20,000 which is what I would enter
> > in the first instance.
> >
> > Since then I have started my own business (Ltd Co. only a few months
old)
> > and am currently taking out around £90 per week for 12 months until it
gets
> > going.
> > Added to this I receive £90 per week rental on a second property. This
gives
> > me a
> > weekly income of around £180 - £9360pa. I am married - my wife is
currently
> > looks after the children aged 1 & 4 and is not in employment.
> >
> > 1) Am I correct in thinking that a second home doesn't now
> >      disqualify you from applying for Tax Credits? (It did used to for
WFTC)
>
> Correct, savings/capital don't disqualify you, but taxable income from
capital
> usually counts towards your assessed income. Tax free income doesn't
count.
>
> > 2) I have seen figures banded about regarding WTC and CTC but am never
sure
> > if the figures
> >     are pw,pm or pa??
>
> They are quoted per year and per week on the IR site:
> http://www.inlandrevenue.gov.uk/rates/taxcredits.htm
>
> > 3) With that many figures being displayed I am getting confused - can
some
> > kind person give
> >     me an idea (Roughly) of what I could expect to receive in both WTC
and
> > CTC combined
> >     per week?
>
> Basically with 2 kids, working full time, no disabilites, you should get
£7080
> this year reduced by 37% of your earnings over £5060 - but you keep the
last
> £545 unless you earn over £50,000.
>

ISTR that there is an issue with shareholder/directors and WTC/CTC. Can't
remember the details off the top of my head and I haven't got time to check
ATM, but I think they calculate an additional  'deemed income' based on the
actual or estimated profits of the company.

> > 4) How is the WTC paid considering I am a director of a company and
> > basically pay myself
> >     - and also have money coming in from the rental?
>
> WTC is usually paid via your employer - but I think it's paid direct to
the self
> employed.
>

He's an employee, not self-employed.

Andy