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Is this how Tax Credits work?

(54 Posts)
zazas Fri 10-May-13 19:25:44

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?

morethanpotatoprints Sat 11-May-13 23:27:06

I think maybe your friend was looking for your agreement. The current climate and the way the media and government are portraying those on tax credits is bad.
I started a similar thread a while back as our accountant had advised us to do what I suggested in previous post. It seemed wrong in a way, and I was looking for people to say, go on do it.
It is an awful state of affairs when people on low incomes feel the need to justify or seek acceptance from others, when all they are doing is trying to support their family. grin

zazas Sat 11-May-13 23:34:42

I think you are right morethanpotatoprints smile

Cantbelieveitsnotbutter Sat 11-May-13 23:50:31

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.

morethanpotatoprints Sun 12-May-13 12:39:46

Can'tbelieve

I guess its different for particular circumstances. grin 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.

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