Miscellaneous Income (Info)
Miscellaneous income means any income that does not fall within any other subject in this section and is taxable under Part 5 of ITTOIA 2005. This applies, for example, to copyright royalties received by individuals whose activities do not amount to a profession (see Inspector Manual (IM) at IM2690).
General disregards in the calculation of income
When calculating income, the following payments can be wholly disregarded
- Click on the required heading
New deal 50 plus
Certain payments under employment legislation
Mandatory top up payments under Voluntary Sector and
Environmental Task Force Options of New Deal and under New Deal
25+
Certain DWP / DSD payments
Educational Maintenance Allowance (EMA)
Training premium, discretionary payment and
subsistence allowance payable in respect of Employment Zone
participation
Qualifying maintenance payments
Fostering allowance
Maintenance received
NHS travelling expenses
Assisted prison visits
Adoption allowance
Payments from a local authority in place of community
care services
Vouchers paid to former asylum seekers
Provident benefits from trade unions
Supporting people
Career development loans
Payments to a juror or witness for attendance at
court
Payments made under a credit insurance policy
Sports awards
Any payment of an employment credit under Section 2(2) of the Employment Act 1988 known as New Deal 50 plus or the corresponding Section 1 of the Employment and Training Act (Northern Ireland) 1950 can be wholly disregarded.
Certain payments under employment legislation
Any payment under
- Section 15 of the Disabled Person's Employment Act 1944(a)
- Section 15 of the Disabled Persons (Employment) Act (Northern Ireland) 1945 (b)
Or
- In accordance with arrangements made under Section 2 of the Employment Act 1988
Or
- Section 1 of the Employment and Training Act (Northern Ireland) 1950 to assist disabled people to obtain or retain employment despite their disability can be wholly disregarded
Mandatory top up payments under Voluntary
Sector and Environmental Task Force Options of New Deal and under
New Deal 25+
An income payment may be disregarded if it is
- A mandatory top-up grant
And
- Made
- Under Section 2 of the Employment and Training Act 1973 or Section 1 of the Employment and Training Act (Northern Ireland) 1950
And
- In respect of the claimant’s participation in an employment programme in the Voluntary Sector or Environmental Task Force Options of the New Deal or in the Intensive Activity Period of the New Deal 25 plus (or, in Northern Ireland, the Preparation for Employment Programme)
A payment may also be disregarded if it is paid under a written agreement between
- The Secretary of State (or in Northern Ireland, the Department of Employment and Learning)
And
- The person who has arranged their participation in the Intensive Activity Period of the New Deal 25 plus (or in Northern Ireland, the Preparation for Employment Programme)
This item applies only to the extent that the payment is not taxable as a profit of a trade, profession or vocation
Any discretionary payment paid under Section 2 of the Employment Act 1988 or in Northern Ireland Section 1(1) of the Employment and Training Act 1950 to meet, or help to meet special needs in the claimant’s participation in the
- Full Time Education and Training option of the New Deal specified in Regulation 75 (1)(b)(ii) of the Jobseekers Allowance Regulations 1996
Or
- Equivalent provision in the JSA (Northern Ireland) Regulations
A payment made by the Department for Work and Pensions under Section 2 of the Employment Act 1988
- By way of In-Work Credit, Job Grant or Return to Work Credit
Or
- Under the Employment Retention and Advancement Scheme or the Working Neighbourhoods Pilot
Educational Maintenance Allowance
(EMA)
An Educational Maintenance Allowance is paid by the following to a young person staying on at school or college beyond the date when they could leave education
- Local Education Authority (LEA)
Or
- In Scotland, colleges which are no longer managed by the LEA
The EMA is for the maintenance of the young person and only made to prevent or relieve financial hardship and should be wholly disregarded.
Training premium, discretionary payment and
subsistence allowance payable in respect of Employment Zone
participation
You should wholly disregard any payment made by an Employment Zone contractor paid to the claimant for their participation in the Employment Zone programme by way of
- A training premium
- A discretionary payment, being a fee, grant, loan or otherwise
Or
- Any arrears of subsistence allowance paid as a lump sum
Qualifying maintenance payments
You should disregard an amount of income equal to any qualifying maintenance payment within Section 347B of the Taxes Act 2001
Disregard any payment, except to the extent that the allowance is taxable as the profits of a trade, profession or vocation (that is under current tax rules, the ‘reward element’ of fostering allowances), in respect of a child made by
- A local authority under Section 23 (2) of the Children's Act 1989 or by Section 21 of the Social Work (Scotland) Act 1968
- A voluntary organisation under Section 59(1) of the Children Act 1989
- By a care authority under Regulation 9 of the Boarding Out and Fostering of Children (Scotland) Regulation 1985
Or
- By an authority within the meaning of Children (Northern Ireland) Order 1995
Disregard any payment of maintenance, whether under a court order or not, which is made or due to be made by
- The claimant’s former partner, or the claimant’s, partner's, former partner
Or
- The parent of a child or qualifying young person where that child or qualifying young person is a member of the claimant’s family except where that parent is the claimant or the claimant's partner
Disregard any payment in respect of travelling expenses
- In relation to England and Wales, under Regulation 3, 5 or 8 of the National Health Service (Travelling Expenses and Remission of Charges) Regulations 1988
- In relation to Scotland, under Regulation 3, 5 or 8 of the National Health Service (Travelling Expenses and Remission of Charges) (Scotland) Regulations 1988
- In relation to Northern Ireland under Regulation 3, 5 or 8 of the Travelling Expenses and Remission of Charges Regulations (Northern Ireland) 1989
Or
- Made by the Secretary of State for Health, the Scottish Ministers, the Secretary of State for Wales, or the Department of Health, Personal Social Services and Public Safety and which is analogous to a payment specified in paragraph (a), (b) or (c)
Disregard any payment made by the Secretary of State or the Scottish Ministers under a scheme established to assist relatives and other persons to visit persons in custody.
Disregard any payment in respect of a child or qualifying young person who is a member of the family made
- In accordance with regulations made by the Secretary of State under Section 57A of the Adoption Act 1976 or Section 51 of the Adoption (Scotland) Act 1978
- By a local authority under paragraph 15(1) of Schedule 1 to the Children Act 1989
- By an authority as defined in Article 2 of the Children (Northern Ireland) Order 1995
- By a local authority by way of special guardianship support services under Section 14F(1)(b) of the Children Act 1989
Payments from a local authority in place
of community care services
Disregard any payments received from a LA, which are in place of community care services, for example money to pay for a home help.
Example
Agnes has applied for tax credits. She receives money from her LA so that she can pay someone to be her home help. You
- Establish that the money received from the LA is paid under the correct legislation
And
- Decide that the money received from the LA should be disregarded
Vouchers paid to former asylum
seekers
Disregard in full any voucher given under Sections 95 or 98 of the Immigration and Asylum Act 1999 to any former asylum seeker or his dependants.
Provident benefits from trade unions
Disregard any payment of a provident benefit by a trade union (for example, unemployment pay, marriage and funeral benefits).
Disregard any payment made under the 'Supporting People' programme. In
- England and Wales under section 93 of the Local Government Act 2000
- Scotland under section 91 of the Housing (Scotland) Act 2001
Or
- Northern Ireland under Article 4 of the Housing Support Services (Northern Ireland) Order 2002
Disregard any of the following payments unless they are taxable as a profit of a trade, profession or vocation
- Expenses incurred by a claimant who is engaged by a charitable or voluntary organisation or is a volunteer
- Travelling expenses reimbursed to the claimant
- A living away from home allowance under Section 2(2)(d) of the Employment Act 1988, Section 2(4)(c) of the Enterprise and New Towns (Scotland) Act 1990 or Section 1 of the Employment and Training Act (Northern Ireland) 1950
- Training grant
Or
- Childcare expenses reimbursed to the claimant in respect of their participation in
- A New Deal option
- The intensive activity period of the New Deal Pilots for 25 plus
Or
- The Preparation for Employment Programme
Disregard any discretionary payment made under section 2 of the Employment Act 1988 to meet or help to meet the claimant’s special needs to undertake a qualifying course within the meaning of regulation 17A(7) of the Jobseekers Allowance Regulations 1996.
You should disregard any payment of a career development loan paid under Section 2 of the Employment Act 1988.
Note: This does not include payments for living expenses
Disregard any payment made to a claimant or their partner in respect of a person who is not normally a member of the claimants family, but is temporarily in their care by
- A health authority
- A local authority
- A voluntary organisation
- That person asking for assistance from Section 26(3A) of the National Assistance Act 1948
- A primary care trust established under Section 16A of the National Health Service Act 1977
- Asking for assistance from Article 36(7) of the Health and Personal Social Services (Northern Ireland) Order 1972 by an authority, a voluntary organisation or the person concerned
Or
- A training school within the meaning of Section 137 of the Children and Young Persons Act (Northern Ireland) 1966
Payments to a juror or witness for
attendance at court
Disregard in full, payments to jurors or witnesses for attendance at court but take into account compensation payments for loss of earnings or benefits.
Payments made under a credit insurance policy
Disregard any payment under an insurance policy taken out to insure against the risk of being unable to maintain the repayments
- On a loan which is secured on the house which the claimant occupies as their home
Or
- Under a regulated agreement or hire purchase agreement or conditional sale agreement
Only disregard to the extent that the payment is used to maintain the repayments or premiums.
Disregard any payment of a sports award except to the extent that the award is made for ordinary living expenses (for example, food, ordinary footwear or clothing, or housing costs or council tax for which any member of the family is liable).
