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 ?
- How much did you pay for your website 1,207 22
- Dispensing with accounting periods, with nested ledgers. 214 4
- Fastest Software 652 11
- Self Employed Self Assessment: Capital Allowance and Car Lease/HP 109 1
- Where did it go? 244 2
- cancellation of Engagement 142 2
- Seed Enterprise Investment Scheme Charges 87 1
- Feuding directors 248 8
- VAT Registration for Building Company 104 2
- FILING COMPANY ACCOUNTS 494 12
- Vat threshold issues 1,900 14
- Company Accounts - Limited company 609 5
- Use of Home for Sole Trader 237 4
- Vodaphone Share Scheme 102 1
- Benefit fraud 3,422 49
- SA Tax Returns 155 3
- Agent Change of Postal Address 147 2
- Consolidated accounts 130 2
- On line petition re HMRC grabbing money from taxpayer bank accounts 1,025 24
- How to deal with a prior year CT adjustment 357 12
- CTA study material 651
- Anyone have clients that use Pay4Later to offer customers credit? 394
- Employment related securities question 247
- ATED Penalties 221
- AIM Stocks and IHT 200
- Tax Relief for overseas employees 171
- Trust for Employee 155
- Expat pension contributions? 150
- Staff accommodation without a rental value or RV 135
- Capital allowances 123