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Working Tax Credits - net or gross income
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# 1
pencilcase
Old 15-02-2009, 7:01 PM
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Default Working Tax Credits - net or gross income

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!

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# 2
alwaysonthego
Old 15-02-2009, 7:25 PM
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You need to give your Gross income before your deductions.
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# 3
subsoniccoyote
Old 15-02-2009, 9:40 PM
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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.
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# 4
pencilcase
Old 16-02-2009, 3:46 PM
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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

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# 5
Pam17
Old 16-02-2009, 6:20 PM
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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
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# 6
raq
Old 17-02-2009, 11:43 AM
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pam17 is correct, we had our first year of figures last year as we are also self employed.
Tomorrow's just another day - keep smiling
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# 7
travellady
Old 17-02-2009, 7:44 PM
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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!
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# 8
CIS
Old 17-02-2009, 7:55 PM
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The figure you need to declare is Income less Expenses. i.e 8K.
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