loss of child tax credit with increasing income

[arbmark]

self-emloyed and just had a kid....anyone know how much you lose for every extra £1000 profit you make?

 

is this a good excuse to tell the missus i should buy a bigger chipper as its going to be half price or whatever!??!?!?!

 

taking into account 20%tax, 9% NI already.....

 

i'd be interested to know how other people look at this....probably through and accountant!

 

Cheers

Mark

[WorcsWuss]

Congratulations Mark! She (?) arrived then!

No idea on the tax side of things though I'm afraid mate....

[arbmark]

Congratulations Mark! She (?) arrived then!

No idea on the tax side of things though I'm afraid mate....

 

Thanks Simon,

Big hands Ben (he!) is doing fine!!! Cant wait to train him up

[samarb]

Get an accountant for God sake Mark. He will advise perfect balance between profit and tax credits, with tax credits it is not only based on income but working hours you will also get standard child tax credits. Also with a big chipper he will claim for it year after year as deprecation and will advise you best way to buy it to limit tax bill. Every situation is different so we can only advise from personal circumstances which may not reflect your situation, rant over. How's life treating you being a dad, has the misses found a new hobby in expensive change bags and prams yet?

 

 

Sent using Arbtalk Mobile App

[arbmark]

Get an accountant for God sake Mark. He will advise perfect balance between profit and tax credits, with tax credits it is not only based on income but working hours you will also get standard child tax credits. Also with a big chipper he will claim for it year after year as deprecation and will advise you best way to buy it to limit tax bill. Every situation is different so we can only advise from personal circumstances which may not reflect your situation, rant over. How's life treating you being a dad, has the misses found a new hobby in expensive change bags and prams yet?

 

 

Sent using Arbtalk Mobile App

 

always bringing god into it......!

 

yea all good - havent chopped anything off in the sleep-deprived haze yet. i just read that to her and she went 'oh that reminds me im bidding on something on ebay....'

[grenadier]

From memory once you and your missus joint income goes over £38k you get nothing in the way of tax credits. Make sure and let them know when it does or they will most likely keep paying you then 3 years later youll have to pay all back. Theyre idiots.

[samarb]

Just you wait for the reasons why she needs an icandy or pink lining bag then you have ammunition to buy new shiny kit. On the other hand you have a boy so your quite within your right to by him a Lego Mog. This is the easy stage it only gets harder and more costly from here on in, how you getting on with new truck scenario?

 

 

Sent using Arbtalk Mobile App

[WorcsWuss]

Thanks Simon,

Big hands Ben (he!) is doing fine!!! Cant wait to train him up

 

Ah, a boy! Someone to take on the mighty 460 as you get old and frail

 

From memory once you and your missus joint income goes over £38k you get nothing in the way of tax credits. Make sure and let them know when it does or they will most likely keep paying you then 3 years later youll have to pay all back. Theyre idiots.

 

Isn't that each or something.....? I know there was a hoo hah over it.... I thought two earners could have a higher combined household income than one high earning single income before the credit was lost.....

[Peasgood]

They are idiots, or incompetent at least.

I've never been in debt in my life til they came along.

A friend of mine was once told she would have to pay back more than she even got!

[agg221]

Isn't that each or something.....? I know there was a hoo hah over it.... I thought two earners could have a higher combined household income than one high earning single income before the credit was lost.....

 

I think you're thinking of child benefit. £50k after deduction of pension and salary sacrifices such as childcare vouchers (get these if you possibly can!) It was objected to on the grounds that if anyone in the 'household' earns over £50k it was switched off - that applied if you had a partner move in who was nothing to do with your kids and was paying maintenance in respect of a previous family, so didn't have much left over anyway, whereas two people earning £49k weren't affected. The objections didn't get anywhere in the end and it kicked in in January.

 

Alec