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Benefit income for tax credits

When adding up your benefit income take into account the total amount paid in the tax year, regardless of the period to which it relates.

Include:

  • Contribution-based Jobseeker's Allowance and contributory Employment and Support Allowance. Note: Income-based JSA and income-related ESA should not be included.
  • taxable long-term Incapacity benefit, including any child dependency increase 
  • Carer’s Allowance (but not the Scottish Carer Supplement)

For more information see HMRC's full list of benefits counted as income for tax credits.

Exclude:

  • Armed Forces Independance Payment
  • Child Benefit
  • Disability Living Allowance
  • Attendance Allowance
  • Maternity Allowance
  • Severe Disablement Allowance
  • Christmas Bonus
  • Winter Fuel Payments
  • Housing or Council Tax Benefit
  • Guardian's Allowance
  • Child Tax Credit
  • Working Tax Credit
  • Pension Credit
  • Incapacity Benefit which is payable at the short term lower rate to a person who received Invalidity Benefit before 13 April 1995
  • Income Support
  • Industrial injuries disablement benefit
  • Income based Jobseeker's Allowance
  • Income related Employment and Support Allowance
  • A social fund payment (including winter fuel payments)
  • Any discretionary housing payment
  • A payment in lieu of milk tokens
  • Back to work bonus payable under the Jobseekers Act 1995
  • Bereavement payment under Section 36 of the Contributions & Benefits Act 1992
  • An ex-gratia payment made by the Secretary of State (or the Department for Social Development in Northern Ireland) to a person over pensionable age to supplement Incapacity Benefit

If you receive State Pensions including the Retirement Pension, Industrial Death Benefit, Widow's Pension, Widowed Mother's Allowance, Widowed Parent's Allowance or Armed Forces Compensation Scheme Survivor's Guaranteed Income Payment and Child's Payment, income from these should be entered as 'other income' not social security benefit income.

For more information see HMRC's full list of benefits NOT counted as income for tax credits

Jobcentre Plus may have sent you a record of the taxable amount of benefit you were paid in the previous tax year. Contact your local Jobcentre Plus office if you do not have details of the amount of taxable benefits paid to you in the previous tax year.

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