WORKING TAX QUESTION.........

[biglips]

We think weve made an error but i need to re-calculate the figures again but i will be ringing the IR again to go over it again.

Do they need to know whats my DP's GROSS or NET earning per year???

thanks

[SlightlyMadSweden]

For tax credits it is GROSS income.

[biglips]

thank you x

[janinlondon]

I think you subtract personal pension contributions?

[SlightlyMadSweden]

Oooo do you? I don't? (but would be happy to if I should )

[biglips]

oh its ok as dp doesnt have one atm

[janinlondon]

SMS you should if you are self employed I think?

[janinlondon]

Found it on the IR website:

Income from self-employment
If you are in self-employment (either on your own or in partnership)
and you have sent us your 2006?2007 tax return, enter your profit
as follows:
? If you completed a Short Tax Return form (SA200), your profit is
the figure you entered in box 3.10.
? If you completed a full Tax Return form (SA100), your profit is
the figure you entered in box 3.83 on the Self-employment Pages
(or box 4.13 on the Partnership Pages) of your tax return.
? If you have more than one business, work out your total profit
by adding together box 3.83 or box 4.13 figures from each
Self-employment or Partnership Page of your tax return.
If you have not sent us your tax return for the year ended
5 April 2007 you must estimate your profits for 2006?2007.
To work out tax credits relief on Gift Aid payments,
personal pension contributions, retirement annuity contributions or
trading losses, phone the Helpline for working sheet TC825.
In box 5.5, enter your total profits
minus
? the gross amount of any contributions you made to a pension
scheme or retirement annuity contract
? any trading losses brought forward from a previous year under
the tax credits rules (see the notes on losses on page 41)
? the gross amount of any Gift Aid payments you made
? any amount you added on for averaging (box 3.81 on the
Self-employment Pages or box 4.12 on the Partnership Pages
of the full Tax Return) perhaps because you are a farmer or
amarket gardener with fluctuating profits. (Averaging is not
allowed in tax credits claims.)
plus
? any amount you deducted for averaging in box 3.81 on the
Self-employment Pages (or box 4.12 on the Partnership Pages) of
the full Tax Return.
Please round down this total to the nearest pound before entering
it in box 5.5. For example, if your profits are £8,345.65, enter
£8,345 in box 5.5.

[SlightlyMadSweden]

DP is SE, will have a proper look at this in time for next renewL.

tHANKS,