CSLM10124 - FAQs: employers questions and answers: do I include tax credits as income?
Suggested answer
No. Tax credits are not treated as income for Student Loans and or Postgraduate Loan (PGL) purposes.
For student loan and or PGL purposes only include earnings as you would calculate for employer’s secondary class 1 NIC purposes.
HMRC action
None.
Notes:
| 1. | The golden rule is ‘If it is liable to NICs it is also liable to Student Loan and or PGL deductions’. |
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| 2. | This applies not only to what income should be included but also applies to queries concerning earnings periods. For more information see CSLM17055. |