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Tax Credits disregard and Gift Aid
JimmyTheWig
Posts: 12,199 Forumite
Hi,
Can someone clarify what is meant by the "Income rise disregard" and "Income fall disregard"?
I'm only really interested in the final award, rather than payments made through the year.
Say in 2016/17 you had an income of £30,000.
1. If you have an income of £32,500 in 2017/18, does the income rise disregard mean you would receive the same tax credits as if you had an income of £30,000?
2. If you have an income of £27,500 in 2017/18, does the income fall disregard mean you would receive the same tax credits as if you had an income of £30,000?
3. And so an income of £32,500 gives you the same tax credits as an income of £27,500?
4. If you have an income of £32,501 in 2017/18, does the income rise disregard mean you would receive 41p less tax credits than if you had an income of £30,000?
5. If you have an income of £27,499 in 2017/18, does the income fall disregard mean you would receive 41p more tax credits than if you had an income of £30,000?
6. And so an income of £32,501 gives you 82p less tax credits than an income of £27,499?
Thanks,
Jim
Can someone clarify what is meant by the "Income rise disregard" and "Income fall disregard"?
I'm only really interested in the final award, rather than payments made through the year.
Say in 2016/17 you had an income of £30,000.
1. If you have an income of £32,500 in 2017/18, does the income rise disregard mean you would receive the same tax credits as if you had an income of £30,000?
2. If you have an income of £27,500 in 2017/18, does the income fall disregard mean you would receive the same tax credits as if you had an income of £30,000?
3. And so an income of £32,500 gives you the same tax credits as an income of £27,500?
4. If you have an income of £32,501 in 2017/18, does the income rise disregard mean you would receive 41p less tax credits than if you had an income of £30,000?
5. If you have an income of £27,499 in 2017/18, does the income fall disregard mean you would receive 41p more tax credits than if you had an income of £30,000?
6. And so an income of £32,501 gives you 82p less tax credits than an income of £27,499?
Thanks,
Jim
0
Comments
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Basically yes.
The difference would then kick in from April 2018 (2018/19) when the claims would then be based on £27,500 or £32,500 (depending on income for 2018/19 income).0 -
Thanks Darksparkle.0
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Next question...
If a tax payer uses Gift Aid when making a charitable donation they can deduct the gross amount of that donation from their income for tax credits purposes.
If a non-tax payer makes a charitable donation they can't use Gift Aid as they don't pay tax. Does that mean that they can't deduct anything from their income for tax credits purposes due to the charitable donation? Doesn't seem right.0 -
Interesting, certainly, but from what I can see all that says is that Gift Aid donations can be deducted. Doesn't mention, as far as I can tell, what to do about donations from non-tax payers.Darksparkle wrote: »0
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