[West Ender]

Originally Posted by emamum23

I know they used to... you'd get your award letter and it would say how much you were entitled to and then deduct your child benefit out of the total as income....

I'd love to see your award notices, Em.

I was working on Tax Credits (on the Intelligence side) from when it started and Child Benefit, which is not a taxable benefit, only comes into the equation in that you can't claim CTC for a child you're not getting Child Benefit for.

What income counts
The income that counts is your taxable benefits, gross earnings from employment, taxable profits from self-employment, pension income, savings income and other taxable income. Income from savings or pensions (and a few other sources) only counts if it is over £300 a year in total; the first £300 is ignored.
Both your incomes count if you are claiming jointly as a couple. Rules on what counts as income can be complex, so check the notes that go with your tax credit form and seek advice if you are unsure.
There is no limit on the savings or capital you can have, and no reduction to your award, except that interest and other income earned from the capital is taken into account.
Your income figure needs to be for the whole tax year (6 April in one calendar year to 5 April in the next). If you are an employee, you should receive a year-end statement of income from your employer (form P60). The figure to use for tax credits is your gross income before tax and National Insurance. If you get benefits, the DWP should give you a statement of taxable benefits at the end of the tax year. Not all benefits are taxable so not all benefits count as income for tax credits. If you are self-employed, you normally use the figure from your self-assessment tax return.