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Tax Credits Questions

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)

2) I have seen figures banded about regarding WTC and CTC but am never sure if the figures are pw,pm or pa??

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?

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?

Sorry for the length of the posting and hope that you can throw some light on this for me as I think I am getting confused with WFTC and WTC and CTC ;-)

Many thanks in advance for any advice offered

John.

Reply to
John
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Correct, savings/capital don't disqualify you, but taxable income from capital usually counts towards your assessed income. Tax free income doesn't count.

They are quoted per year and per week on the IR site:

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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.

WTC is usually paid via your employer - but I think it's paid direct to the self employed.

Reply to
Andy Pandy

"Andy Pandy" wrote in message news:bv8m0h$fgr$ snipped-for-privacy@news8.svr.pol.co.uk...

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.

He's an employee, not self-employed.

Andy

Reply to
Andy Lord

ISTR something about this on uk.gov.social-security a while ago - may be worth the OP searching google groups or posting the query there.

Reply to
Andy Pandy

"Andy Pandy" wrote in message news:SbdSb.19911$ snipped-for-privacy@wards.force.net...

Many thanks to all for the replies and sorry for not getting back sooner (PC Problems).

Thanks for the advice

John

Reply to
John

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