Hello!! I'm after some advice with regards to dividend payments and working tax credits. I have recently started my own ltd company. Now I grasp the basics of paying myself the minimum personal allowance over the course of the year, then top up my wages with dividend payments. Now here is what I need advice on. I have a family of 1 and another on the way. My partner claims working/child tax credits for our first child already on a salary of £20,000. When we have our second child, again she will claim for working/child tax credits. My salary is based on the personal allowance rate, an therefore puts me on low income. If I was to apply for working tax credits too, would any dividend payments I receive affect any money I may have to pay back to hmrc for tax credits...?? Would I have to declare dividend payments to hmrc as extra income??? I'm unsure on this area as I'm told then any dividend payments I receive are tax free!! Any advice would be greatly appreciated!!