Income Calculation (AG)

To calculate the income of the claimant / partner for tax credit purposes consider steps 1 - 6 below

1	Calculate and add together the income of the claimant / partner from the following sources Pension income Investment income Property income Foreign income Note: Include foreign income which has not been forwarded to the UK. Disregard foreign income which cannot be forwarded to the UK and is relieved from income tax by virtue of Section 584 of the Income and Corporation Taxes Act 1988 And Notional Income
2	If the total in step 1 Is £300 or less treat the income as nil and disregard it Exceeds £300, deduct £300 from the total
3	Calculate and add together the claimant’s / partner’s income from the following sources Student income Miscellaneous income Employment income Social Security income
4	Add together the amounts resulting form the calculations in steps 2 and 3
5	If the claimant / partner is self employed calculate the trading income, or loss as a self employed earner Note: Self employment must be carried out on a commercial basis for losses to be allowed
6	Add together the amounts resulting from the calculations in steps 4 and 5 to determine the income of the claimant / partner Note: If the earnings from self employment during the year have resulted in a net loss, the amount of that loss should be deducted from the total income at step 4