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Tax Credits & ISA income (experts only)

TooManyQuestions
TooManyQuestions Posts: 16 Forumite
edited 22 April 2014 at 2:10PM in Benefits & tax credits
Hello, I'm new to the forum, hope you will be forgiving of my errors.

My partner and I have a mid-teens child and I am trying to work out if we qualify for tax credits. I work more than 24 hrs per week but the business is struggling.

Is dividend income within a Stocks and Shares ISA disregarded for the purpose of calculating income to arrive at the tax credit amount?

On page 16 of the TC600 guide "Getting your tax credits form right" it says, in the section about "Other income for the year":
"Don't include tax-exempt investments like ISAs."

But that is not what I am asking!

I know the taxman already knows my ISA income (every ISA must have an associated national insurance number), so he could be automatically adding any such income in anyway, and the reason for telling me not to include it is if I did, he would be double counting it.

I have tried to find this out by phoning the helpline and looking online, but there were no answers at all. I don't think the officials on the end of the phoneline even understood the question, frankly.

If this isn't the best place to ask, could you please suggest where may be best? An accountant didn't know either but laughed and said it was a very good question.

Thank you for any help.

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