Tax Credits - £25,000 increase in income.
I have a client who is intending to take an unpaid sabbatical off work for most of 2009/10 tax year. I am looking at the tax credit position for him.
- 2008/09 joint income is approx £30,000.
- 2009/10 joint income is expected to be £10,000. Because of number of children, this would give them a significant tax credits award.
- 2010/11 client intends to return to work, producing joint income back at £30,000.
Am I correct in my understand that the 2010/11 tax credits will be based upon the 2009/10 income and, as the increase in income for 2010/11 is less than £25,000, no clawback will take place ?
Is this too good to be true ?
- Companies House Authentication code 251 10
- Client refusing to change basis period 244 11
- Free accounts system for small business? 422 9
- Looking for free PDF creator 1,460 43
- VAT on converting Commercial property to residential 70 3
- It gets worse ! 392 2
- PCTR for Audit Qualification 99 1
- Building premises bought on 99 year lease 84 1
- Increasing the personal allowance: A top priority? 2,004 66
- Is an apprenticship classed as another job for PAYE RTI rules 184 2
- RBS asking client to switch accountant 481 8
- Payroll Software Recommendations 321 10
- P60 Plain Paper from Sage Payroll 355 15
- saturday staff 417 4
- Sports Club - Option to tax 71 1
- Highlighting a line on cell click 65 4
- Moving from Moneysoft to another payroll product 549 12
- Suppliers for Online Card Payments? 658 15
- Rights of Alphabet shares 358 13
- Multiple bodies and practicing certificates 272 3
- Xtuple 587
- Qtac payroll for bureau 414
- Confused - Professional Association a Mutual trader, or not? 358
- Director legal fees in loose connection to the company 231
- Tax on damages received 211
- Accounts consolidation spreadsheet 174
- Temporary non residence and CGT on non-UK asset 170
- PTP Software 159
- Accounting for commercial lease with break clause 145
- Software for Belgium Company 142