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  • FIRST POST
    pencilcase
    Working Tax Credits - net or gross income
    • #1
    • 15th Feb 09, 7:01 PM
    Working Tax Credits - net or gross income 15th Feb 09 at 7:01 PM
    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
Page 1
    • alwaysonthego
    • By alwaysonthego 15th Feb 09, 7:25 PM
    • 7,912 Posts
    • 10,748 Thanks
    alwaysonthego
    • #2
    • 15th Feb 09, 7:25 PM
    • #2
    • 15th Feb 09, 7:25 PM
    You need to give your Gross income before your deductions.
  • subsoniccoyote
    • #3
    • 15th Feb 09, 9:40 PM
    • #3
    • 15th Feb 09, 9:40 PM
    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
    • #4
    • 16th Feb 09, 3:46 PM
    • #4
    • 16th Feb 09, 3:46 PM
    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
    • Pam17
    • By Pam17 16th Feb 09, 6:20 PM
    • 2,914 Posts
    • 1,356 Thanks
    Pam17
    • #5
    • 16th Feb 09, 6:20 PM
    • #5
    • 16th Feb 09, 6:20 PM
    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
    • By raq 17th Feb 09, 11:43 AM
    • 1,701 Posts
    • 642 Thanks
    raq
    • #6
    • 17th Feb 09, 11:43 AM
    • #6
    • 17th Feb 09, 11:43 AM
    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
  • travellady
    • #7
    • 17th Feb 09, 7:44 PM
    • #7
    • 17th Feb 09, 7:44 PM
    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!
    • CIS
    • By CIS 17th Feb 09, 7:55 PM
    • 9,026 Posts
    • 5,071 Thanks
    CIS
    • #8
    • 17th Feb 09, 7:55 PM
    • #8
    • 17th Feb 09, 7:55 PM
    The figure you need to declare is Income less Expenses. i.e 8K.
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