Reckonable Income used for Child Benefit
Your reckonable income is normally the income for IOM tax purposes you and your partner (if you have a partner) added together had in the tax year two years before claiming benefit.
By 'partner' we mean the person you are married to or your civil partner or someone you live with as if you were married to them or they were your civil partner. Income for IOM tax purposes is income before deducting any tax allowances or reliefs.
But if you or your partner or both of you (if you have a partner) were not assessed for IOM income tax two years before then your reckonable income is the income for IOM tax purposes that you think you or your partner or both of you (if you have a partner) will have in the tax year you are claiming Child Benefit.
Predicted current year income is also used if there have been certain changes in your circumstances and/or your partner's circumstances (if you have a partner) which mean that you and your partner's income added together is likely to be at least £5,000 less in the current tax year than two years before. Those circumstances include unemployment, sickness and giving up work to look after a child under the age of 5. Contact us (see below) if you want us to use the predicted current year income of the person whose circumstances have changed rather than their assessed income when calculating your reckonable income.
Certain employment termination payments and lump sum payments of deferred State pensions are ignored in calculating your reckonable income. Contact us (see below) if you want us to disregard any of those payments.
+44 1624 685656 (option 2)