Tax Credits Self Employed
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Erinbeetie
Posts: 2 Newbie
My partner is self employed and we claim tax credits. Due to being on a very low income we qualify for the school uniform grant and free school bus pass, but before they will give us the grant and pass we need to provide our tax credit paperwork showing our total income from April 2016-April2017. My partners accounts run from Nov-Nov. He has just completed his accounts up until Nov 2016. How am I supposed to give actual income for Apr 2016-2017 if he wont be completing the 2017 accounts until Aug 2018? The uniform grant people will not accept tax credit paperwork with an estimated income. The last 2 years his business has run at a loss.
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Erinbeetie wrote: »My partner is self employed and we claim tax credits. Due to being on a very low income we qualify for the school uniform grant and free school bus pass, but before they will give us the grant and pass we need to provide our tax credit paperwork showing our total income from April 2016-April2017. My partners accounts run from Nov-Nov. He has just completed his accounts up until Nov 2016. How am I supposed to give actual income for Apr 2016-2017 if he wont be completing the 2017 accounts until Aug 2018? The uniform grant people will not accept tax credit paperwork with an estimated income. The last 2 years his business has run at a loss.
Do they want actual income or the income used for tax credits for the 2016/17 tax year?
If it is the tax year 2016/17, then I assume you have just given an estimate when you did your renewal? If you did and he has now finalised the accounts to Nov 2016 then that becomes his actual 2016/17 income for tax credits so you can finalise the figure.
IQ0 -
I spoke to the tax credit people today and they said we had to work out his income for apr 16/17 inclusive. So I should just give them the nov 15/16 figure instead?0
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you give them the same figure as you will give on his self-assessment for 16/17 which will his taxable income for the year ending Nov 16 - which ends in the 16/17 tax year and is his 16/17 income.
IQ0 -
Just do a draft set of accounts from November to April this year, as you would normally prepare the accounts anyway to get ready to file the tax returns. You might have them ready so far anyway. You can extract the income figures from that,November to April, and then just add it to relevant few months from the previous accounting year. Would that work?
Am assuming there are monthly accounts, money in and expenses out, and that you keep a complete copy.
I have a different accounting year too, and I did that to get a mortgage, certified as accurate by my accountant, and it was absolutely fine. But I know benefits might be a different ball game.0 -
Jenniefour wrote: »Just do a draft set of accounts from November to April this year, as you would normally prepare the accounts anyway to get ready to file the tax returns. You might have them ready so far anyway. You can extract the income figures from that,November to April, and then just add it to relevant few months from the previous accounting year. Would that work?
Am assuming there are monthly accounts, money in and expenses out, and that you keep a complete copy.
I have a different accounting year too, and I did that to get a mortgage, certified as accurate by my accountant, and it was absolutely fine. But I know benefits might be a different ball game.
No that won't work if they want tax credits income - his 16/17 income is based on his accounting year ending Nov 16 - no need to do any splitting or apportioning.
IQ0
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