In this section:
When the Tax Credit Office works out your tax credits payments, they look at your income for the last tax year. A tax year runs from 6 April one year to 5 April the next. As well as what you earn by working you'll have to give details of other income. If you're claiming as a couple it is your joint other income that counts.
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You should include the following types of other income - but only if the total was more than £300:
For example, if your total other income from any of these added together was £421, only include £121 (£421 less £300).
There are exceptions to this rule though. For the following types of other income you should include the full amount - don't deduct £300:
For help working out your other income, use the worksheet in the notes that came with your tax credits claim form or renewal pack. Or you can call the Tax Credit Helpline.
You need to include interest from your bank or building society accounts. You can find this information on interest statements or your passbook.
Also enter income from UK company dividends, including dividends from a company of which you and/or your partner are directors. If you received UK company dividends, you should add the tax credit - shown on the dividend voucher supplied by the company - to the dividend.
You should also include any chargeable event gains from a life insurance policy, for example from the sale of an investment bond. The amount of the gain will be shown on the certificate issued by your insurer.
You will need to enter the amount of any State Pension, including:
You should also include:
If you receive an occupational or personal pension, you will need to give the full amount before any tax was taken off. You can find this information on your P60 or other certificates of pension paid. Also include any annuity payments from a pension scheme.
If your pension includes an extra amount for a work-related illness or injury, call the Tax Credit Helpline.
Include income from property in the UK that you own or rent.
If your rental property made a loss, you can use a working sheet to help you work out what to enter.
You might have received income from a trust, settlement or the estate of someone who has died. If so, the trustees or administrators will have given you a certificate telling you what income was paid to you. This will either be form R185 (Trust) or form R185 (Estate). Include the gross amount - the amount before any tax was taken off.
This may, for example, be income from investments and property overseas or social security payments from overseas governments. You should include the full amount, whether or not it came into the UK. You should include the gross amount - the amount before any tax was taken off - even if it is not taxable in the UK. Give the amount in British pounds, not the foreign currency.
If you receive a foreign pension, whether or not it came into the UK, you should include 90 per cent of the full amount. You should include the amount in British pounds, not the foreign currency.
You may take off any banking charge or commission paid when converting foreign currency into British pounds.
To convert foreign income into British pounds, use the average exchange rate for the year the income relates to. So, if the income relates to 6 April 2013 to 5 April 2014, use the average exchange rate for the year ended 31 March 2014.
If you need any help, you can contact the Tax Credit Helpline.
Notional income is income that you're treated as having which you may not in fact have. Include:
This does not apply to:
Also include capital that's treated as income. For example, if you hold shares in a UK company, and they give you new shares (a 'stock dividend') instead of a cash dividend.
For help working out notional income, you can contact the Tax Credit Helpline.
Include all money you received for the Adult Dependants' Grant - regardless of whether the amount was over or under £300. The Adult Dependants' Grant is paid to students with a partner or a dependent adult.
Include all money you received for any child or adult dependants' grant in Scotland - regardless of whether the amount was over or under £300.
Enter any miscellaneous income which is taxable - for example, copyright royalties paid to you for a book when you are not a professional author. If you are unsure whether to include the income, call the Tax Credit Helpline.
Include all miscellaneous income – regardless of whether the amount is over or under £300.
If you are unsure whether or not to include income, call the Tax Credit Helpline.
To get the final figure:
Remember that you should include all of the money you received from the Adult Dependants' Grant, any dependants' grant in Scotland and miscellaneous income. This is regardless of whether the amount is over or under £300.
Write the final figure on your claim form or Annual Declaration Form, rounding it down to the nearest pound. If you end up with a minus figure, enter 0.