The relevant legislation is the Tax Credits (Definition and Calculation of Income) Regulations 2002, as subsequently amended. The legislation was amended in late 2003 to reflect some of the problems in dealing with the self employed claimant, and in particular to deal with losses brought forwards and carried forwards.
The income of the claimant, or joint claimant is calculated for the tax year as follows.
Add together :
- Pension Income
- Investment income
- Property Income
- Foreign Income
- Notional Income
If the result is £300 or less, the result of step 1 is treated as nil. If the result is more than £300 only the excess is included. For a couple the £300 applies to their joint income from these sources. Wher...
About Rebecca Benneyworth
Rebecca trained in London with Kidsons and, on qualifying, spent some time as Chief Accountant of a manufacturing company. She now has her own small practice in Gloucestershire that comprises of owner managed businesses and small companies.
She also lectures extensively for a range of professional bodies, accountancy firms, commercial organisations and the Inland Revenue. Demand has grown for Rebecca on the lecture circuit where she is well known for her refreshing, enthusiastic and entertaining presentation style as well as having a practical and down-to-earth approach to tax.