Working Tax Credits - net or gross income

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pencilcase
pencilcase Posts: 24 Forumite
in Benefits & tax credits
I'm self employed with an income of £9500, which I've given as my 'income' figure for my WTC application - but on another board they said I should give my net income (ie, income after tax of say £1000 - ie, £8500 - when I asked the WTC direct they said no, I should give the gross income, but I know they've got a bit of a reputation for getting their wires crossed, so thought I'd come and ask here

Many thanks in advance!

Pencilcase

Comments

  • alwaysonthego_2
    alwaysonthego_2 Posts: 8,471 Forumite
    Combo Breaker First Post
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    You need to give your Gross income before your deductions.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    When declaring income to tax credits, you declare the gross income from your payslip/P60/P45.

    When declaring your income from self employment, you declare the net profit.
    This is your income after expenses but before tax & NI.
  • pencilcase
    pencilcase Posts: 24 Forumite
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    Thanks -tha's what the WTC people said, but because of hearing something different on another forum I thought I'd better check!

    Many thanks

    Pencilcase
  • System
    System Posts: 178,094 Community Admin
    Photogenic Name Dropper First Post
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    As you are self-employed you need to declare your profits which is what you have left after your expences have been taken off.

    Tax and National Insurance are not expenses.

    WTC were telling you the truth
  • raq
    raq Posts: 1,716 Forumite
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    pam17 is correct, we had our first year of figures last year as we are also self employed.
    :A Tomorrow's just another day - keep smiling
  • travellady
    travellady Posts: 151 Forumite
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    Hello I'm self employed too in my first year and because I have found it so confusing to claim I never have so to get it straight in my mind if I brought in say £10k but expenses came to £2k would I take off the £2k and tell them my gross earnings are £8k?

    Sorry I might sound a little numb!
    I am a Travel Agent

    My company’s ATOL/ABTA numbers are L318X. MSE doesn't check my status as a Travel Agent, so you need to take my word for it. ATOL numbers can be checked with the Civil Aviation Authority. This signature is here as I follow MSE's Travel Agent Code of Conduct.
  • CIS
    CIS Posts: 12,260 Forumite
    Name Dropper First Post First Anniversary
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    The figure you need to declare is Income less Expenses. i.e £8K.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
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