New Enterprise Allowance - taxable or not?

A new client has been receiving New Enterprise Allowance. Please can someone tell me (with authority for the answer) whether it is taxable or not. Depending on who I ask and where I look, the answer is different. says that 'any money you get does not affect income tax' implying that it is tax-free.  However, BIM40401 says that it is business income - how then can it not affect income tax? Which is correct please?
  • Isn't NEA payable to the unemployed person who starts a new business after being on JSA for six months?  I'm not sure why you might think it would be subject to CT - it is not company income.  HMRC is presumably telling you that the individual has to report it as miscellaneous income on his SA return.

    If the new business is in a company, any of the NEA that the claimant pays into the company would be capital, wouldn't it? 
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