TCM0118160 | 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.