Tax Credits

[Straws]

Hi all,
Not sure i posted this in right section my mate who has just registered is confused about tax credits, does she put her income down before expenses are taken off or after expenses are taken off. so for example her gross income was 10k but after expenses it was 5k which figure would she use,??????

Straws xx

[sarah707]

This is the question on the online calculator which might help... to the left of here -

http://www.taxcredits.inlandrevenue.gov.uk/HomeNew.aspx

What are your earnings from all paid jobs (but not including self employment) before deductions between 6th April 2007 and 5th April 2008?

[chez1373]

How i thought it is,

if u earned 10,000 in the year u give tax credits the amount after exspence an 10% wear an tear so say that is 5,000 that is the amount u give tax credits


if u dont know what u will earn you estimate i did this by addin up my fees for the year and divide it by 3 that is the amount u give tax credits i read that some where but i might be wrong...


if im wrong please tell me as i have done this now for the second year...

[tulip0803]

The tax credit website says:-

"If you were self-employed from 6th April 2007 to 5th April 2008, what was your net self-employed profit? (If you made a loss enter a '0' in the box, click 'self-employed profit' and read the section on 'losses')"

So income after expences have been taken off plus any other income from paid employment in another box

[sarah707]

Dunno then... I just read the online stuff can't remember what I filled in...

I'm usually in an alcoholic haze when doing the forms


I suggest she rings them tomorrow - 0845 300 3900

[cloud9]

You would tell them £5k its net profit. (this is all your income minus expenses and 10% wear and tear)