To calculate your dependants’ residual income we will deduct certain expenses from their taxable income in the previous financial year.
Your own estimated income during the academic year may also be included in the assessment.
The allowable expenses that may be deducted from the taxable income are as follows:
- Income Tax
- National Insurance
- Personal / Employee pension contributions
- Mortgage payments / Rent payments
- Life Assurance (insurance)
Any remaining income (residual income) will then be deducted from your Dependants Allowance entitlement. The entitlement is calculated based on the number of dependants you have.
If the residual income is more than the possible entitlement, you will not be awarded any Dependants Allowance.