Home | News | News story

Tax Credits

The deadline for submission of the annual tax credit review was 31 July 2007.  However, we still regard the following lesser known facts about calculating your income relevant.  After all, if need be you can contact the Revenue with corrected figures.

 

Earnings as an Employee

 

If you have received Statutory Maternity Pay you can deduct £100 from your income for each week you received it.

 

Statutory Maternity Pay is taxable income but for tax credits purposes £100 per week is ignored.

 

If you were on maternity leave but your employer did not pay Statutory Maternity Pay you may have claimed Maternity Allowance instead.  Maternity Allowance is not income for the purposes of tax credits and should not be included anywhere on your tax credits claim form.

 

Trading Loss

 

The tax credit rules on trading losses operate separately from those for Income Tax.  This means that for tax credit purposes you deduct the trading loss from:

• any other income you may have for that year or
• in a joint claim, any other income which you and the other claimant (your spouse or partner) may have for that year. 

The working sheet with which to calculate relief and losses is HM Revenue & Customs form TC825 - www.hmrc.gov.uk