The Revenue CTC notes and CTC help line are dispensing incorrect advice. Acting on this incorrect advice might result in a permanent loss of tax credit.

Errors identified to date (see below) include

Gift Aid The form and notes do not refer to any possibility of any deduction. The help line state that no deduction should be made. The correct treatment is to deduct the gross gift from the approriate income.

Pension Contributions The legislation allows the deduction, gross, from the total income of either claimant. The form only refers to deduction from earned income of the policyholder.

Trading Losses The notes say enter '0', the legislation says deduct from joint income,
The notes refer to trading profits minus any trading loss brought forward. There is no statutory authority for that statement.

Correct at the time of writing, 20 March 2003. One would hope that these errors will be corrected swiftly.

The source of the information on this page is Peter Gravestock FTII FCA ATT (author, lecturer, and fellow member of both the Institute of Chartered Accountants and the Chartered Institute of Taxation).

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