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Are Tax credits taxable?
sunshine124
Posts: 247 Forumite
hi, can anyone tell me whether the Tax credit system is taxable? Sorry to ask this stupid question, i'm self employed but I'm new to these benefits and was just wondering whether they take off tax first, or at the end of the year?
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Comments
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Hi sunshine,
No, they are not taxable. As for your s/e inc - tax credits use your NET PROFFITS to calc your entitlment, so you will need to advise the helpline of your estimated net proffit to get the correct award. If the inc figure is wrong your award may be too so think before you call! Hope that helps.
:rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl:
Smile - it confuses people!
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thx for the reply, so does that mean I can spend the money where i want and not include that in my accounts or tax return?0
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Money from tax credits is yours to spend as you see fit!
No, it wont count as an income for your SA return. There are lots of things which do/dont count for SA so can get a bit complex - if your new to it, it may be worth calling the SA helpline for advice or using an accountant for at least your 1st year.
:rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl:
Smile - it confuses people!0 -
Self Employed Helpline number 0845 915 4515.
Use www.saynoto0870.com to find a landline number if needed.0
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