Is working tax credit counted towards earned income in council tax calculation?

moneymaker2010

I sent a letter back to the people at the council tax office asking why they gave me a higher than estimated bill and they sent me back the calculation. I understand the calculation although there is still a discrepancy which I can only put down to them having taken my working tax credit into account of the calculation as earned income.

I thought that working tax credit didn't count as earnings although searching I cannot find a source for my thinking this and so don't know if I am correct or not.

Anyone else know for sure? plus give me a source if poss!

thanks.

nannytone_2

working tax credits are still income, even if they arent 'earned'

DX2

Other benefits that may be affected

Some benefits you might get are 'means tested'. This means that the money you get depends on:

• how much you've got coming in - your income
• how much you've got in your savings

When your benefit is worked out, any tax credits that you (and your partner if you have one) get might be counted as income. This could be Working Tax Credit, Child Tax Credit or both. The benefits that may count tax credits as part of your income are:

• Council Tax Benefit
• Housing Benefit
• Income Support
• income-based Jobseeker's Allowance
• income-related Employment and Support Allowance
• Pension Credit

The more money you've got coming in, the lower these benefit payments will be. Sometimes they may go down to nothing - 'nil'.
http://www.hmrc.gov.uk/taxcredits/payments-entitlement/other-benefits/affect-on-benefits.htm

moneymaker2010

thanks.

Ye I was just looking through the calculations and online and just came to the same conclusion (after two hours of furious research).