TCTM04805 - Notional Income
Claimants provide services to others for less than full
earnings
Notional earnings
The Tax Credits (Definition and Calculation of Income )
Regulations 2002, Reg.17
If a claimant provides a service for another person and:
- the other person makes no payment of
earnings or pays less than for a comparable employment, trade or
business in the area;
and
- the Commissioner's for Revenue &
Customs are satisfied that the other person has the means to pay
for, or to pay more for the service,
then
-
The claimant is treated as having an amount of employment
or trading incomethat is reasonable for that employment, trade or
business.
Note:
This does not apply to claimants who are volunteers, or are
engaged to provide a service to a charitable or voluntary
organisation and HM Revenue & Customs is satisfied that it is
reasonable for the claimant to provide the service free of charge.
It also does not apply where the service is provided by a
claimant who is participating in an employment or training
programme.
