Which state benefits to report when making a tax credits claim

The amount of tax credits you get depends on your income. Some state benefits such as Bereavement Allowance count as income when you make a tax credits claim - so if you're getting one of these benefits, you'll have to tell the Tax Credit Office when you fill in your claim form.

What to include

When you're making a claim for tax credits you'll need to enter on the claim form any state benefits you get that are taxable, such as:

Bereavement Allowance.
Carer's Allowance - this used to be called Invalid Care Allowance - including any Child Dependency increase.
Incapacity Benefit - only include benefit paid after the first 28 weeks of incapacity together with any Child Dependency increase. Don't include benefit paid during the first 28 weeks of incapacity. If any tax was taken off your benefit, include on the claim form the amount that was due to you before the tax was taken off.
Income Support - this is only taxable if you were in a couple and the person receiving the Income Support was on strike. You don't need to report it otherwise.
Contribution-based Employment and Support Allowance – it is only the contribution-based allowance that is taxable. Don’t include it if it is the income-related Allowance.
Contributions-based Jobseeker’s Allowance.

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What not to include

Don't include on your claim any benefits you get which aren't taxable like:

Child Benefit
Attendance Allowance
Disability Living Allowance
Housing Benefit
Council Tax Benefit

For help working out which benefits to include, use the worksheet in the notes that came with your tax credits claim form, or renewal pack, or call the Tax Credit Helpline on Tel 0845 300 3900 or textphone 0845 300 3909.

Download notes on making a tax credits claim (PDF 2.6MB)

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Housing Benefit and Council Tax Benefit

If you're on Housing Benefit or Council Tax Benefit, any tax credits you receive will be taken into account as income. This means that the amount you get will be reduced to take into account this additional income - but overall you'll still be better off.

It's very important to tell your local authority how much you're getting in tax credits. Otherwise you may get an overpayment of Housing Benefit or Council Tax Benefit and then have to pay it back.

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Other income

You might have money coming in from other sources, like:

State Pensions - including the Retirement Pension
Industrial Death Benefit
Widowed Mother's Allowance
Widowed Parent's Allowance
Widow's Pension

Enter these types of income in the Other income box on your tax credits claim form or Annual Declaration form.

Find out how to work out your other income

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Non-UK benefits

You might get a social security benefit from another country, for example like:

Unemployment Benefit
Children’s Allowance

Depending on the type of benefit you get, you will need to do either of the following:

For any non-UK benefit you get that is counted as 'income' you will need to enter it on your claim form under 'other income'. Examples of benefits that count as income include benefits paid because someone close to you has died or you're unemployed.
If the benefit you get is a ‘family benefit’ for example Children’s Allowance or Family Income Supplement, you don’t need to enter it on your claim form. You should send in a separate note with your claim instead.

Find out more about non-UK benefits and tax credits

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