PART 2 Income for the purposes of tax credits
CHAPTER 4 Trading Income
F1Trading Income: in-year finalisation6B
1
Where regulation 6A applies, a claimant’s trading income for the purposes of the first paragraph in Step 4 in regulation 3(1) is the claimant’s actual or estimated taxable profits attributable to the part tax year (“the relevant trading income”).
2
The relevant trading income is to be calculated by reference to the basis period ending during the relevant tax year.
3
The basis period is to be determined by reference to the rules in Chapter 15 of Part 2 of ITTOIA.
4
The relevant trading income is calculated by—
a
taking the figure for the actual or estimated taxable income earned in the basis period;
b
dividing that figure by the number of days in the basis period to give the daily figure; and
c
multiplying the daily figure by the number of days in the part tax year on which the trade, profession or vocation was carried on.