TCM0116060 - Eligibility - income (calculation): Income calculation - general deductions (Info)

When calculating income for tax credits purposes deduct

• the amount of any banking charge or commission payable for the cost of exchanging foreign currency (income that is made in a currency other than sterling)
• the gross amount of any qualifying donation (Gift Aid) made by either customer as approved under Chapter 2 of Part 8 of ITA (Gift Aid)
• the amount of any contribution made by either customer to a registered pension scheme together with the amount of any tax relief due on those contributions.

Note: Gift Aid can only be claimed by a taxpayer who has paid enough tax in the year the donation was made. When working out their income for tax credit purposes, a non-taxpayer would not be expected to claim Gift Aid deductions. We would only expect to see deductions from a person with a taxable income who has actually made Gift Aid payments.