To calculate this, your parent(s) / civil partner / partner's gross taxable income for the previous financial year is used. For the 2016 / 17 Academic year, the applicable financial year will be the period running from 6 April 2015 to 5 April 2016.
Certain allowable expenses are then deducted from this to give the 'residual income'. The allowable expenses that we can take into account against the income are:
- Employee Pension Contributions, if they attract tax relief
- Personal Pension Contributions, if they attract tax relief
- Loan interest - if allowed for tax purposes, this is for self employed persons only
- Professional Subscriptions and any other tax relievable expenses
In addition to these the following expenses can be taken into account when calculating a partner's residual income to determine any Dependants Allowance entitlement.
- Income Tax
- National Insurance
- Mortgage payments / rent payments
- Maintenance payments made to another person as agreed by a court order, by the Child Support Agency or through a voluntary agreement