Question
My daughter is a director of a limited company trading as a small coffee shop, not making a profit. She has been drawing a salary of £500 per month. An article in Sunday Telegraph indicates she may be eligible for some sort of working tax credits. Is this correct in these circumstances please?Answer
I'm afraid I'm no expert on the tax credit system - it's fiendishly complex. However, looking at the rules your daughter may well be eligible for the Working Tax Credit, potentially worth up to £1,920 a year.
Eligibility depends on the number of hours of paid work per week and amount earned, with the limits for both dependent on whether or not your daughter is single and whether she has children. And, if she has children, the minimum income level can also depend on whether your daughter is paying for approved childcare.
Rather than run through the various criteria in full here, it'd be simpler for your daughter to use the HMRC .tool here to find out which tax credits she's entitled to and, if so, how much.
Hopefully she'll be eligible for some help while she builds her bueinsess.
My daughter is a director of a limited company trading as a small coffee shop, not making a profit. She has been drawing a salary of £500 per month. An article in Sunday Telegraph indicates she may be eligible for some sort of working tax credits. Is this correct in these circumstances please?Answer
I'm afraid I'm no expert on the tax credit system - it's fiendishly complex. However, looking at the rules your daughter may well be eligible for the Working Tax Credit, potentially worth up to £1,920 a year.
Eligibility depends on the number of hours of paid work per week and amount earned, with the limits for both dependent on whether or not your daughter is single and whether she has children. And, if she has children, the minimum income level can also depend on whether your daughter is paying for approved childcare.
Rather than run through the various criteria in full here, it'd be simpler for your daughter to use the HMRC .tool here to find out which tax credits she's entitled to and, if so, how much.
Hopefully she'll be eligible for some help while she builds her bueinsess.
Read this Q and A at http://www.candidmoney.com/askjustin/820/eligible-for-working-tax-credit
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