Working Tax Credit

Working Tax Credit

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I began self employment as a sole trader recently. Prior to that i was in employment and getting working family tax credit. My question is: The drawings i make out of the business, will they count towards my income at the end of the year when it comes to calculating my award?

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By nogammonsinanundoubledgame
08th Dec 2009 10:03

No

Your taxable profit is relevant.  Your drawings are not.  There may of course be a correlation between the two, but that would be incidental.

Do you have an accountant to help with your self-employment activities?  He/she would be able to tell you this.  There may be planning opportunities available to you that are beyond the scope of this post.

With kind regards

Clint Westwood

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By DMGbus
08th Dec 2009 14:04

Yes, ask an accountant

Unfortunately not all accountants (whether qualified or not) are upto speed on Tax Credits.

The risk is that you'll choose one who either doesn't want to know (like I don't want to know about Offshore or any other Trusts or audits) or have limited experience on the subject (? not part of Chartered Accountants exam syllabus ?).

Therefore specifically seek out an accountant who really is enthusiastic and knowledgable about tax credits.  Such a person could ensure that your tax credits are maximised by even such a simple thing as choosing an accounting date of 30 April or 5 April - it can make a big difference which you choose if your first 12 months include significant capital expenditure.

 

 

 

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By Phil Rees
08th Dec 2009 14:21

I should not be surprised (but I am) that there are still accoun

 aisaacademy.files.wordpress.com/2009/05/ostrich-large.jpg

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