The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
New claims for tax credits are no longer possible as they have been replaced by the universal credit for all claimants. Existing claimants will continue to receive tax credits until they are migrated to the universal credit system. Migration will take place when a change in circumstances is reported.
See the Universal credit guidance note.
A claimant’s trading income is defined in the regulations as follows:
the amount of his taxable profits for the tax year from:
any trade carried on in the UK or elsewhere, and
any profession or vocation the income from which does not fall under any other provisions of the tax credits regulations
if the claimant is a partner in the trade, profession or vocation, his taxable profit for the year arising from his share of the partnership’s trading or professional income
SI 2002/2006, reg 6
‘Taxable profits’ has the same meaning as set out in ITTOIA 2005, Part 2 and is therefore net of any capital allowances claim. In the case of both sole traders and partners, the averaging rules are ignored so the profit used for tax credits is the taxable profit f
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