WTC and CTC - What is income?

My client is an owner manager of a close company. He has a favourable loan account balance with the company (money invested last year) and will choose to draw no salary next year - his regular income to be replaced by the loan repayment.

Does this mean that his income for tax credit purposes is nil and therefore a claim for WTC and CTC is acceptable?

I accept that there are potentially moral issues, but it seems to be a legitimate case for a claim. Afterall, true earned income is nil - the only income is a debt repayment.

All observations and comments welcomed!
Simon

Comments
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But....

AnonymousUser |

Deliberate reduction of income?

Tim Good |

Legitimate Claim

Albasas |
Albasas's picture

Enquiries

Sherlock |

Not so fast!

elwynturner |