Tax credit planning | AccountingWEB

Tax credit planning


Tax Credit Tax planning ?

I have recently quoted for the accounts for a limited company and the client asked if I did Tax Credit planning.

He said that his current accountant was offering this services on a commission basis.

I was wondering if any one else is offering this services and if it is actually possible.

The only tax credit planning I can think of for a director is

1 keep salary and dividends low

2 Fluctuate directors salary bi annually to take advantage of the income disregard rules.

I remember being on course sometime ago were the speaker pointed out that point 2 would not work as the benefit office can make its own assessment on salary if it suspects  income is being manipulated to maximise tax credits.

Can anyone comment on the above ? Am I missing a planning opportunity for my clients ?

All comments are greatly appreciated.




There are 7 comments. Login or register to view them.

I think you are only missing

bernard michael |

Income deprivation/Notional Income

taxhound |
taxhound's picture

Tax Credits

jaybee661 |
jaybee661's picture

Agree with jaybee.....I have done some tax credit

justsotax |

... agree with justsotax...

jaybee661 |
jaybee661's picture


arnold28 |


jaybee661 |
jaybee661's picture