Declaring Actual Income & Redunadancy Payment

Mrs.W_2

Sorry if this is a bit long-winded - I'll try to include all relevant information...

My husband was self-employed when making our Tax Credits Annual Declaration for the period 2009 to 2010, so we declared an estimate that was higher than his expected earnings for that period.

Tomorrow he will phone HMRC to adjust the declared figure to represent his actual earnings. (They are lower than the estimate.)

Shortly into the 2009/2010 declaration period, H received a redundancy payment (£5000) from an employer who let him go in June 2009. He then went self-employed.

Does the redundancy payment need to be counted as earnings for the Tax Credit declaration?

The payment was purely redundancy, and did not include PILON.

Mrs.W_2

Not to worry. I managed, eventually, to get through to the HMRC helpline.

no-oneknowsme

Glad you managed to get through.

It may benefit others in the future if you were willing to post what you were told when you rung tc offfice

Are redundency payments counted as income for tc purposes?

DanE2010

redundancy money that is £30,000 or over should be inlcuded for tax credits, anything below that doesnt need to be included.