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Dependants Income - what's the impact

On the PFF1 form for a parent at section 3 it asks for information on unearned and earned income for dependant children aged over 16 for the academic year.

Does anyone know what the impact of this is? I think there is money knocked off the household income for a dependant but what about the income they earn and if they earn over a certain amount are they not classed as a dependant even though they live with you and you pay all the household costs?
Regards
erb :)

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