Child Tax Credit

Hi Everyone

I'm hoping that those with greater experience than mine can help me.

I have a client who has quite an amount in overlap profits carried forward each year. Now I'm in the process of releasing these by bringing the year end in line with the tax year but I'm wondering about whether it will affect his tax credits claim.

His profit for the new period will be about £45,000 with overlap profits of £25,000. If we kept the July year end his profit would be around £25,000.

My question is what profit figure is used in the tax credit claim? Would it be the adjusted tax figure of £45K - 25K= £20K or the £45K?

I really do appreciate any replies.

Comments

  • groundy
    groundy Registered Posts: 495
    Anne

    The tax credit figure is whatever profit is shown on the tax comp, hope this helps
  • Anne Boleyn
    Anne Boleyn Registered Posts: 196 ? ? ?
    Tax credit

    hi Groundy

    Thanks for replying. However, is it the profit figure or the adjusted profit figure that would be taken into account for tax credit claim?
  • stevo5678
    stevo5678 Registered Posts: 325
    Its the tax adjusted figure not the profits per the accounts.
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