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 ?
- Correcting earlier year CT600s 204 4
- Non VAT invoices 36 1
- Do you use commercial software for Self Assessment tax returns? 136 4
- CT600 - Credit balance in expenses? 204 7
- Form 17 Download 45 1
- Client in dispute with Customer over cancellation charge 1,317 31
- Claiming VAT on car lease 528 28
- Small hotel - food for personal use 356 4
- HMRC Information notice 971 24
- Recommendations for online payroll software 254 3
- Accountant Specialization. 352 5
- ACCA Special Business Resolutions... 133 1
- Accounting Web - What is happening? 1,723 42
- Sage Line 50 158 3
- Off topic slightly - any football fans out there? 148 1
- Can my company contibute more than 40000 to my pension in a tax year? 417 6
- CWF1 - is it still required?? 386 7
- Seafarer's Earnings Deduction 154 1
- Freelance/Employee 701 17
- Rectify overpaid childcare vouchers, how? 187 2
- Chart of account segments; Balance sheet vs P&L 750
- Any knowledge of salesorder.com 410
- Could and would anyone here carry out a hot file review of some non statutory audit work please? 362
- Electric Car 297
- S222 Charge 242
- Corporation tax penalties and fines on the CT600 198
- IP trans to holding company 192
- Software to Deal with Amazon and Ebay Sales 177
- Best way to convert Sage data to VT Transaction+ 172
- AIA 171