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.
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