How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4207
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

According to my P60 my annual income is gher because of

Customer Question

Hi
According to my P60 my annual income is higher because of commitment bonus, which we'll get only one time in our whole career. I renew my child tax credit and they are saying my income is higher so they stopped giving Child tax. They are saying bonus will also count as income but I get that bonus only once not every year, Anybody have anyidea please explain.Rai
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

Hello, Rai, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

Your commitment bonus would be part of your income for Income Tax (IT) purposes so one must assume that your P60 is correct.

Tax credits are calculated as shown here:

https://www.gov.uk/guidance/tax-credits-working-out-income

The following extract from this source is relevant:

'wages as an employee, including any ‘employer benefits’ you might have had'

Here is further support from Disability Rights UK web site:

'What counts as income for tax credit purposes is based on income tax rules. So taxable income is taken into account and other income is ignored'

Thus the inclusion of your bonus should be taken into account by the Tax Credit office (TCO) in assessing your entitlements for the tax year in which you received your bonus.

I am so sorry to have to rain on your parade.

.

Customer: replied 1 year ago.
Hi keith, that means I have to wait for next year to get child tax again.
Expert:  bigduckontax replied 1 year ago.

Unfortunately, yes.

Not very nice I know to receive a bonus and have your tax credits taken away. Always check the TCOs calculations though as that office is notorious for making errors.