Tax credit question ..

dippy3103

I can't find the answer anywhere. One for the tax credit experts.

Is Bereavement Allowance treated as an income in TC calculations? I have tried the power of Google & failed to find the answer. It's for a friend who has recently been widowed. She works & is struggling on her low income. She intends to find a better paid job, but in the meantime struggles.,


Thanks x

HappyMJ

dippy3103 wrote: »

I can't find the answer anywhere. One for the tax credit experts.

Is Bereavement Allowance treated as an income in TC calculations? I have tried the power of Google & failed to find the answer. It's for a friend who has recently been widowed. She works & is struggling on her low income. She intends to find a better paid job, but in the meantime struggles.,


Thanks x

It is taxable income so yes it counts as income for tax credits purposes. Bereavement Payment (the one up to £2,000) is not but does count as capital for means tested benefits such as housing benefit if not spent.

dippy3103

Thanks - she's hoping to find a better job in the not too distant future. His death was sudden so she's still reeling

Darksparkle

Google "tax credits income".

The first link was this - https://www.gov.uk/guidance/tax-credits-working-out-income

Your income includes:
wages as an employee, including any ‘employer benefits’ you might have had
profit from self-employment
other income, like interest on savings or pensions
money from state benefits unless they’re ‘tax free’ benefits

Which links you to taxable/non taxable benefits - https://www.gov.uk/income-tax/taxfree-and-taxable-state-benefits

dippy3103

Darksparkle wrote: »

Google "tax credits income".

The first link was this - https://www.gov.uk/guidance/tax-credits-working-out-income

Your income includes:
wages as an employee, including any ‘employer benefits’ you might have had
profit from self-employment
other income, like interest on savings or pensions
money from state benefits unless they’re ‘tax free’ benefits

Which links you to taxable/non taxable benefits - https://www.gov.uk/income-tax/taxfree-and-taxable-state-benefits

That's where I was going wrong.. I was googling "tax credits disregards"!

Thank you.

Darksparkle

dippy3103 wrote: »

That's where I was going wrong.. I was googling "tax credits disregards"!

Thank you.

No problem.

Disregards are something different entirely.