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HMRC internal manual

Tax Credits Technical Manual

Notional Income: Introduction

The Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg. 13

In certain circumstances, claimants may be treated as having income they may not possess.


  • Claimants deliberately getting rid of income in order to claim or increase their tax credits
  • Claimants failing to apply for income to which they are entitled
  • Claimants providing a service for low rates of payment