Eligibility - income (employed and self-employed): Self-employed income (Introduction)
Where income needs to be taken into account in the calculation of a tax credit award, customers supply details of income from the following sources, each of which is taken into account. These are
- employment income
- self-employment income
- Social Security benefit income
- miscellaneous income
and the following that are collectively known as other income
- pension income
- investment income
- property income
- student income
- foreign income
- notional income.
Note: Guidance on when income needs to be taken into account in the calculation of a tax credit award and the periods over which it needs to be measured for any particular award, are covered in TCM0132120.
A customer’s statement of self-employment should be accepted unless there is reason to doubt it.
The customer must meet the conditions of entitlement to Working Tax Credit (WTC) as set out in Regulation 4 of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002.
A self-employed earner is a person who
- is gainfully employed in Great Britain or Northern Ireland otherwise than as an employed earner, whether or not other employment is undertaken as an employed earner
- enters into a contract to provide services for a client or customer as a sole trader or in partnership with others
- is responsible to the full extent of their assets for the debts of the business
- is entitled to all the profits of the business (if a sole trader) or the agreed share of profits (if in a partnership)
- is subject to taxation under Income Tax (Trading and Other Income) Act 2005 ITTOIA) 2005.