From: "Bill" (e-mail address removed)
Date: 13/12/03 11:32 GMT Standard Time
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While I'm on here - can I just ask about this TAX thing? my sister
unfortunately had to give her job up to look after her kids because her
husband became ill (hubby claiming Incapacity Benefit/Income support) all in
all the family receive £180 a week this obviously brings her above the £88 a
week before paying TAX scenario so how does this work?
Bill
Does any of the £180 include Housing and/or Council Tax Benefits? If so, then
exclude them as they are not taxable income
Same with DLA - not taxable income
The remainder - Incapacity Benefit IS taxable income - your brother-in-law
should have received a letter at the commencement of his claim to notify him of
this.
Income Support is not taxable income.
Is Carers Allowance in payment to your sister - this is also taxable income.
We really need a breakdown of what makes up the £180 so we can work out what
constitutes taxable benefits and what doesn't.
Incidentally, taxable income benefits as Incap Ben and Carers Allowance will
each have a seperate tax allowance applied to them if the benefits are paid to
seperate people (ie hubby gets Incap Ben, wife gets Carers Allowance).
If the tax threshold is exceeded then that person will pay tax on their benefit
- as far as I understand it.
Robbie
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