TCTM04222 - Income: employment income rules - Specific payments and benefits in kind excluded from employment income for tax credit purposes: Job Grant, Return to Work Credit, etc

The Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg 4 (4) Table 1 item 16

A payment made by the DWP

• By way of an In-Work Credit, Better Off In Work Credit, Job Grant or Return to Work Credit.
• Under the Employment Retention and Advancement Scheme or the Working Neighbourhoods Pilot (all made under section 2 of the Employment and Training Act 1973).
• Under the City Strategy Pathfinder Pilots,
• By way of an In-Work Emergency Discretion Fund payment pursuant to arrangements made by the Secretary of State, or
• By way of an Up-front Childcare Fund payment pursuant to arrangements made by the Secretary of State
• Under the Future Capital pilot scheme

Note: With effect from 6 April 2017 the way in which many salary sacrifice and benefit in kind schemes are taxed will change, which means that some tax credit claimants will see an increase in their taxable income.

For the purposes of tax credits, where one of these schemes is in operation the taxable income figure should be used.